Consumer
Activists, bidi workers and public health organizations welcome’s GST Council
decision to tax all tobacco products including bidis at 28% saving millions of
lives
Consumer
Activists, Public Health fraternity along with doctors
and bidi workersfrom across the country, welcomed GST Council’slandmark
decision to categorizeall tobacco products including bidis as demerit goods,
taxing them at the highest tax rate at
28% under GST. This is one of the most critical public health decisions taken
by the Indian Government thatwill have a long lasting impact on the lives of
India’s 275 million tobacco users. Taxing bidis, cigarettes and chewing tobacco
products at the highest GST rate will not only discourage the consumption of
tobacco products but will also increase revenue collections for the government.
“
Categorizing all tobacco products at
the highest GST rate, including bidis, is one of the boldest and most impactful
public health decisions that Indian Government has taken to protect the health
of its citizens from the growing menace of tobacco addiction. Taxing bidis at
28% will prevent death and disease not only amongst millions of bidi users, but
also amongst bidi workers who are mostly women and children,” says
– Mr.Ashim Sanyal,Chief Operating Officer, Consumer VOICE.
All
major countries in the world subject tobacco products to high rates of taxes
with the objective of discouraging their use among the poor & youth and
also to garner additional revenue. For tobacco taxation to work as a deterrent
against tobacco consumption, the tax regime needs to be uniform across all tobacco
products. By taxing bidi at the same rate as cigarettes and chewing tobacco,
the government has assured that millions of bidi users will quit and millions
of youth will be prevented from initiating tobacco usage. Global experience around
the world has shown that while tax increase will decrease use, government
revenue will still increase.
“The government's bold decision to tax bidis at the highest level gives
us courage and confidence that the real voice of bidi workers has been heard
and that the government is serious in addressing the enormous health harms that
are faced not only by workers but also users,” saidTamil Nadu’s Thangam (45, who has been rolling bidis since she was 10
years old. “On behalf of all bidi workers, I thank the government and are grateful
that it did not hear the voices of the bidi company owners who have been using
us as a shield to evade higher taxes," she added.
 |
| Mr. Ashim Sanyal, Chief Operating Officer, Consumer VOICE. |
Bidis are the most commonly
used tobacco product in India, accounting for 64% of all tobacco consumption
and are disproportionately consumed by the poor. Bidis contribute to the majority of the 10
lakh deaths attributable to tobacco as well as the staggering economic burden
caused by tobacco use.Of relevance here is a 2008 report published by the Union
Ministry of Health and Family Welfare.
Titled ‘Bidi Smoking and Public Health’, it reviewed 15 studies conducted in India and concluded that bidi smoking poses a very high risk for cancer and in many cases bidi smokers were at greater risk for oral cancer, stomach cancer and lung cancer than non-smokers.
Titled ‘Bidi Smoking and Public Health’, it reviewed 15 studies conducted in India and concluded that bidi smoking poses a very high risk for cancer and in many cases bidi smokers were at greater risk for oral cancer, stomach cancer and lung cancer than non-smokers.
Government
has demonstrated tremendous commitment towards safe guarding the health of poor
in India by keeping bidis in the demerit goods category of GST.This is also a
significant step in protecting them from the growing menace of tobacco products,
says Ms.Nirmala
Desikan, Chairman ,Consumers Association of India
India has the second largest number of tobacco users (275
million or 35% of all adults in India)
in the world – of these at least 10 lakh die every year from tobacco
related diseases. The total direct and indirect cost of diseases attributable
to tobacco use was a staggering Rupees 1.04 lakh crore ($17 billion) in 2011 or
1.16% of India’s GDP.
For more details
Nirmala desikan
Chairman and Managing Trustee
Consumers Association of India
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