Tobacco Taxes in India Remain Below WHO Benchmarks Despite Rising Health Concerns
Despite being the world's second-largest consumer and producer of tobacco, India's cigarette taxes account for only 53% of the retail price, far below the WHO's recommended 75%. While recent excise duty hikes increased prices, they haven't kept pace with inflation, making tobacco relatively affordable. Tobacco use kills approximately 1.35 million people annually in India. Experts highlight that the tobacco industry often interferes with policy-making to weaken control measures. Furthermore, the GST on beedis remains low at 18%, despite their high consumption among low-income groups, representing a missed opportunity for public health intervention.
Key Points
- India's tobacco tax (53%) is significantly lower than the WHO benchmark of 75% of the retail price.
- Tobacco-related diseases cause 1.35 million deaths in India every year.
- The tobacco industry is accused of interfering with health-centric tax policies and decision-making.
- Beedis, highly consumed by low-income groups, are taxed at a lower GST rate of 18%.
Exam Facts
- WHO benchmark for tobacco tax is 75% of the retail price.
- Tobacco kills 1.35 million people in India annually.
- GST on beedis is currently 18%, compared to 40% for cigarettes.
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