Health bodies ask for higher tobacco taxes

Excelsior Correspondent
Srinagar, May 17: As GST Council is all set to meet for its last meeting here tomorrow, various health bodies today demanded for fixation of higher taxes on all tobacco products.
“It is imperative that Bidis which are the most commonly used tobacco product in India, accounting for 64% of all tobacco consumption and disproportionately used by the poor should be put in the demerit/sin rate category under the GST regime to avert a public health disaster,” health bodies have suggested.
Pertinently, the Council’s decision at tomorrow’s meeting will have a long lasting impact on the lives of India’s 275 million tobacco users. “Practically all major countries in the world subject tobacco products to high rates of consumption taxes with the objective of discouraging its use among the poor and youth and to garner additional revenue,” the bodies said.
“The GST Council should tax all forms of tobacco including bidis at 28 percent under GST regime, to send the right public health message that all tobacco products are demerit products and their consumption should be discouraged through higher taxation in the interest of public health,” he said.

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