Increase duty on tobacco to deter consumption: Activists
BENGALURU: Public health groups, along with economists, have urged the Union Government to increase excise duty on all tobacco products to generate additional revenue, while it may also deter people from consuming such products. In their appeal to the Union Finance Ministry, they have sought an increase in excise duty on cigarettes, beedies and smokeless tobacco. According to the group, increasing excise on all tobacco products can be a very effective policy measure to address the immediate need to raise revenue by the Centre.
“It will be a winning proposition for generating revenue and reducing tobacco use and related diseases as well as Covid-related comorbidities. The tax revenue from tobacco could significantly contribute to the increased need for resources during the pandemic, including vaccinations and augmenting the health infrastructure,” a press release stated. “Making tobacco products unaffordable to children by increasing tax is the best and easy method of deterrent. This needs to be done as tobacco is highly addictive and tobacco companies target children by capitalising on social and legal approval of tobacco as a consumable,” said SJ Chander, Convenor of Consortium for Tobacco Free Karnataka.
Economist and former director of Institute of Social and Economic Change Prof RS Deshpande said tobacco is a medically-proven unhealthy substance, and mere persuasion does not help de-addict consumers, especially the youth. “An economic double-edged tool like taxing products could be effectively used as a good deterrent, which will incidentally add to the tax revenue.