<p> It is only sin tax rate above 40% that would make all tobacco products unaffordable to youth and other vulnerable populations, opine experts. <br /><br /></p>.<p>Doctors at the Institute of Public Health said that this will not only help maintain the current tax burden on tobacco, but will prevent more Indians from falling prey to life-threatening diseases and get caught in a cycle of perpetual poverty. <br /><br />The Central Board of Excise and Customs had at a GST council meeting that concluded on October 20, proposed a much lower 26% GST sin rate. <br /><br />Not good news<br /><br />“A much lower GST rate would make all tobacco products even more affordable to youth and other vulnerable populations, leading to the impact of the tobacco epidemic becoming more severe driving up health care costs and resulting in productivity losses. This will certainly lead to an increased number of fatalities per year, which is not good news for any country. I firmly believe and urge the government to tax the tobacco products at very high rate to ensure it discourages mass consumption” said Dr U S Vishal Rao, member of a High Powered committee for tobacco control, government of Karnataka.<br /><br />Vicious cycle<br /><br />Meanwhile, Dr Upendra Bhojani, assistant director, Institute of Public Health (IPH) said, “The current tobacco tax differentiates significantly between various forms of tobacco products (such as bidis, smokeless tobacco and cigarettes). Continuing to sell cheap, virtually tax-exempt bidis to the underprivileged, even in the new GST system, will ensure that the poor continue to be trapped in a vicious cycle of poverty and ill health, exacerbated by affordability and addiction which cause them to spend more on tobacco and less on food, healthcare and education. We would urge the Central and state governments to tax all forms of tobacco, including bidis, at 40% under the GST regime, to insulate the population from its ill effects.”<br /><br /></p>
<p> It is only sin tax rate above 40% that would make all tobacco products unaffordable to youth and other vulnerable populations, opine experts. <br /><br /></p>.<p>Doctors at the Institute of Public Health said that this will not only help maintain the current tax burden on tobacco, but will prevent more Indians from falling prey to life-threatening diseases and get caught in a cycle of perpetual poverty. <br /><br />The Central Board of Excise and Customs had at a GST council meeting that concluded on October 20, proposed a much lower 26% GST sin rate. <br /><br />Not good news<br /><br />“A much lower GST rate would make all tobacco products even more affordable to youth and other vulnerable populations, leading to the impact of the tobacco epidemic becoming more severe driving up health care costs and resulting in productivity losses. This will certainly lead to an increased number of fatalities per year, which is not good news for any country. I firmly believe and urge the government to tax the tobacco products at very high rate to ensure it discourages mass consumption” said Dr U S Vishal Rao, member of a High Powered committee for tobacco control, government of Karnataka.<br /><br />Vicious cycle<br /><br />Meanwhile, Dr Upendra Bhojani, assistant director, Institute of Public Health (IPH) said, “The current tobacco tax differentiates significantly between various forms of tobacco products (such as bidis, smokeless tobacco and cigarettes). Continuing to sell cheap, virtually tax-exempt bidis to the underprivileged, even in the new GST system, will ensure that the poor continue to be trapped in a vicious cycle of poverty and ill health, exacerbated by affordability and addiction which cause them to spend more on tobacco and less on food, healthcare and education. We would urge the Central and state governments to tax all forms of tobacco, including bidis, at 40% under the GST regime, to insulate the population from its ill effects.”<br /><br /></p>
