Up compensation cess on tobacco products: Experts to GST Council

Experts have said there has not been any major increase in tobacco taxes since the introduction of GST in July 2017, and all tobacco products have become more affordable over the past three years.
For representational purposes
For representational purposes

BENGALURU: Public health groups, along with doctors, have urged the GST Council to increase compensation cess on all tobacco products to generate additional revenue, in view of the council’s meet on Friday, suggesting that the revenue can be used for Covid-related programmes like vaccination.

Experts have said there has not been any major increase in tobacco taxes since the introduction of GST in July 2017, and all tobacco products have become more affordable over the past three years. And, according to the World Health Organisation (WHO), raising the price of tobacco products through tax increases is the most effective policy to reduce tobacco use.

“There is growing evidence that tobacco increases the risk for severe Covid-19 infection. Smoking worsens lung function and reduces immunity. Tobacco users who develop Covid infection have more complications and a greater risk of fatality. It is urgent to increase taxes on all tobacco products to reduce their affordability and consumption,” said Dr Vishal Rao, oncologist and member of the High Power Committee on Tobacco of the State Government, reiterating that the revenue generated through higher taxes can be used for Covid treatment and vaccination.

Related Stories

No stories found.
The New Indian Express
www.newindianexpress.com