Goemkarponn Desk
PANAJI: Doctors, Economists & Consumer Groups, Public Health Advocates across India have welcomed the Union Finance Minister’s announcement to increase national calamity contingent duty (NCCD) on cigarettes to 16 percent in the annual budget of 2023-24.
They are appreciative of the government’s decision to make cigarettes less affordable while urging that these efforts be augmented by increasing taxes on bidis and smokeless products to strengthen its initiatives to reduce tobacco use in India.
While presenting the Union Budget 2023-24 in Parliament, Union Minister for Finance & Corporate Affairs, Smt Nirmala Sitharaman proposed to revise National Calamity Contingent Duty (NCCD) on specified cigarettes upwards by about 16 percent. The NCCD on specified cigarettes was last revised three years ago.
Sh.Ashim Sanyal, CEO Consumer VOICE,New Delhi* says The nominal increased NCCD tax on cigarettes during this budget is a welcome sign of Govt. recognition about the harmful effects of tobacco products .Appreciated with the hope that this momentum will be carried forward to the next GST Council meeting where Cess of a higher percentage will be levied on all tobacco products, he added. There are enough reports produced by Govt. Itself to prove the fact that tax increases saves lives and generates revenue for the government without any social or political impacts.
The present GST rates on tobacco products combined with the compensation cess for all tobacco products is much lower than the World Health Organization (WHO) recommended tax burden of at least 75% of retail price for all tobacco products. The total tax burden is currently only about 53% for cigarettes, 22% for bidis and 60% for smokeless tobacco.
Dr.Shekhar Salkar, Renowned Oncologist & President NOTE, India* Goa said Increasing NCCD on cigarettes in the union budget is a welcome step by the Government, however the percentage increase is minimal. We hope that in future, Finance Minister will ensure a significant increase in taxation and decrease in the affordability of all tobacco products to match the message that has been sent so strongly in this budget”. “Bidis and Smokeless Tobacco are the most used tobacco products in India and are consumed disproportionately by the poor.
Lack of tax increase for past several years have made these products more affordable. It is critical to make tobacco products expensive and beyond the reach of vulnerable populations like youth and the underprivileged sections of society”he adds.
Doctors, public health groups, youth and economist have been urging the Government to increase taxes on cigarettes but on bidis, and smokeless tobacco as this is a winning proposition for generating revenue and reducing tobacco use and related diseases.
The Parliament Standing Committee on Health submitted a pertinent and comprehensive report on Cancer Care Plan and Management in which it undertook a detailed study of the causes of Cancer in India and noted with concern that in India, “the highest number of lives lost is due to oral cancer caused by tobacco, followed by cancer of the lungs, oesophagus and stomach.” It also noted that tobacco use is one of the most prominent risk factors associated with cancer. In view of these alarming observations, the Committee has noted that India has one of the lowest prices for tobacco products and there is a need to increase taxes on tobacco products. The Committee accordingly recommended that the Government to raise taxes on tobacco and utilize the additional revenue gained for cancer prevention and awareness.
India has the second largest number (268 million) of tobacco users in the world and of these 13 lakhs die every year from tobacco related diseases. Nearly 50% of all cancers in India are due to tobacco. The annual economic costs from all diseases and deaths attributable to tobacco use is estimated to be Rupees 177,341 crores in 2017-18 amounting to 1% of India’s GDP.
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