BENGALURU: At the GST council’s 41st meeting to discuss ‘Compensation to States’ on Thursday, public health experts and economists urged for an increase in compensation cess on all tobacco products.
Economist and health policy analyst Dr Rijo John said, “Coronavirus has impacted the economy in such a way that it will need unprecedented financial resources to recover. Levying additional compensation cess on all tobacco products will help boost the economy.
” He suggested that just by levying an additional cess of Rs 1 per beedi stick, Rs 5 per cigarette and a 52 per cent increase on smokeless tobacco products, additional tax revenue to the tune of Rs 50,000 crore can be achieved.
Dr S Venkatesh, senior cardiologist, Aster RV Hospital, and an anti-tobacco advocate, said, “Levying compensation cess on products like cigarettes, beedis, etc, at a time when the state is fighting Covid-19 is much-needed, as the move will make the tobacco products unaffordable. Also, this will help curb the spread of the virus as tobacco users are at greater risk of contracting the disease.”