Tobacco Taxation Issues: ''COP6'' Trying to Develop Global Strategy

Source from:  Business Recorder  10/15/2014

The sixth session of the Conference of the Parties (COP6) to the WHO Framework Convention on Tobacco Control (WHO FCTC) opened at Moscow World Trade Centre on Monday to develop consensus on a global strategy to deal with issues of taxation on tobacco products and checking interference of tobacco industry in smooth implementation of the said Convention.

The conference also analyzed excise duty/value added tax (VAT) structure on cigarettes, etc, in different tax administrations across the globe. WHO FCTC is the most successful international treaty on healthcare as the WHO FCTC has been signed by 179 member-countries representing 90 percent of the world population.

Pakistani side was presented by Mazhar Nisar Sheikh Director Implementation Ministry of Health, who presented issues related to health, taxation, social and others faced in controlling use of tobacco products in the country. He also highlighted the major problems being faced in Pakistan during implementation of Framework Convention on Tobacco Control in Pakistan. Mazhar explained measures taken by the government in consultation with the stakeholders to reduce consumption of tobacco products.

The WHO FCTC proposals discussed in the conference included price and tax measures and non-price measures to reduce the demand for tobacco covering protection from exposure to tobacco smoke; regulation of the contents of tobacco products; regulation of tobacco product disclosures; packaging and labelling of tobacco products; education, communication, training and public awareness; tobacco advertising, promotion and sponsorship and demand reduction measures concerning tobacco dependence and cessation; illicit trade in tobacco products; sales to and by minors and provision of support for economically viable alternative activities.

In Moscow the COP met for the sixth time since the treaty entered into force and number of Parties to the Convention (countries) has grown steadily over the years, from the 40 Parties that brought the treaty into force in 2005, to 113 at COP1 in 2006, and 179 as of 2014. The COP is the governing body of the Convention, which meets regularly to review implementation of the Convention and takes the decisions necessary to promote its effective implementation.

On the opening day of COP6, a global progress report based on the 2014 implementation reports of the Parties has shown their increasing compliance with the provisions of the treaty. It also showed that many countries continue to face legal challenges from the tobacco industry and front groups when implementing tobacco control measures, in some cases by opposing domestic legislation and in others by using international trade and investment agreements to challenge countries ' initiatives in curbing the tobacco epidemic. Therefore, it is not surprising that the interference of the tobacco industry continues to be reported by countries as one of the most frequently identified barriers to implementation of the Convention.

The agenda of COP6 covers many substantive issues covering guidelines for implementation of Article 6, devoted to price and tax measures to reduce the demand for tobacco, will be proposed for adoption by the countries; recommendations on economically sustainable alternatives to tobacco growing (Articles 17 and 18 of the WHO FCTC) will also be presented, with policy options to be considered.

The COP will discuss and provide guidance to the countries on trade and investment issues relevant to implementation of the WHO FCTC, as well as liability. Decisions are expected to be adopted on globally emerging products, which include smokeless tobacco products, water pipe, and electronic nicotine delivery systems.

Several budgetary and institutional matters, including the adoption of the next work plan and budget for 2016-2017, will be decided. The status of ratification of the first protocol to the WHO FCTC, to eliminate illicit trade in tobacco products, which was adopted at the previous COP in Seoul, will be reviewed in Moscow. The COP will also provide guidance on promoting this treaty and accelerating progress towards its entry into force. Enditem