VHAI appeals for high taxes on tobacco products

Excelsior Correspondent

SRINAGAR, Oct 18: As State of Jammu and Kashmir continues to spend more on tobacco products than the monthly national average, a health advocacy group has demanded higher tax rate on all tobacco products so as to minimize the adverse impact of smoking on public health.
“Jammu and Kashmir’s monthly spending on smoking tobacco outstrips the national monthly expenditure averages. While nationally, smokers aged 15 and above spend Rs 399.20 a month on cigarettes and Rs 93.40 on bidis, those in J-K spend Rs 513.60 and Rs 134.20, respectively on these tobacco forms,” Voluntary Health Association of India (VHAI), quoting a Global Adult Tobacco Survey, (GATS) report said.
“Higher taxes are particularly effective in reducing tobacco use among vulnerable populations, such as youth, pregnant women, low-income smokers and chewing tobacco users,” said Dr. Rijo John, Assistant Professor, IIT Jodhpur, who is also an expert on tobacco taxation.
Importantly, the higher taxation on tobacco products will have a direct bearing on the consumption of tobacco products in JK as 26.6% population in the State is using tobacco product in one or the other of its form, the VHAI said. “The new GST regime should ideally act as a deterrent to the consumption of health hazard causing substances such as Cigarettes, Bidis and other tobacco forms through higher taxes”, VHAI added.
“All differentiations should be done away with regards to tobacco and tobacco products and these products should be taxed at the highest slab under GST, since lower GST rates would contribute to their affordability and end up promoting their increased consumption amongst most vulnerable sections of population pushing them below the poverty line,” Bhavna Mukhopadhyay, CEO, VHAI said.