The government should raise taxes on cigarettes and bidis to internationally recommended levels, a move that would save millions of lives and generate more than Rs 18,000 crore in revenues.
The government should raise taxes on cigarettes and bidis to internationally recommended levels, a move that would save millions of lives and generate more than Rs 18,000 crore in revenues.
According to a new report by leading Indian, American and Canadian economists and public health experts, if India increased its tax rate on bidis from Rs 14 to Rs 98 per 1,000 sticks (from 9% to 40% of retail price) and on cigarettes from Rs 659 to Rs 3,691 per 1,000 sticks (from 38% to 78% of retail price), 18.9 million lives could be saved every year. Cigarette taxes currently account for less than 40% of the retail price of a package, far below the WHO's recommended levels of 65% to 80%.
The report - Economics of Tobacco and Tobacco Taxation in India - released by two of its authors, Dr Govinda Rao of the National Institute for Public Finance and Policy and Dr Prabhat Jha of the Centre for Global Health Research, last week concluded that without strong action, over 50 million Indians alive today would die prematurely from tobacco consumption. Bidi and cigarette smokers die 6 to 10 years earlier than their non-smoking counterparts.
According to experts, tobacco-related illness and death costs the Indian government around Rs 30,000 crore. Raising taxes on cigarettes and bidis to internationally recommended levels would generate more than Rs 18,000 crore annually in new government revenues that could be used to support efforts to reduce tobacco use and help bidi workers.
According to a new report by leading Indian, American and Canadian economists and public health experts, if India increased its tax rate on bidis from Rs 14 to Rs 98 per 1,000 sticks (from 9% to 40% of retail price) and on cigarettes from Rs 659 to Rs 3,691 per 1,000 sticks (from 38% to 78% of retail price), 18.9 million lives could be saved every year. Cigarette taxes currently account for less than 40% of the retail price of a package, far below the WHO's recommended levels of 65% to 80%.
The report - Economics of Tobacco and Tobacco Taxation in India - released by two of its authors, Dr Govinda Rao of the National Institute for Public Finance and Policy and Dr Prabhat Jha of the Centre for Global Health Research, last week concluded that without strong action, over 50 million Indians alive today would die prematurely from tobacco consumption. Bidi and cigarette smokers die 6 to 10 years earlier than their non-smoking counterparts.
According to experts, tobacco-related illness and death costs the Indian government around Rs 30,000 crore. Raising taxes on cigarettes and bidis to internationally recommended levels would generate more than Rs 18,000 crore annually in new government revenues that could be used to support efforts to reduce tobacco use and help bidi workers.
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