ATF Mysuru welcomes hike in GST on cigarettes, questions reduction on beedis

The Anti-Tobacco Forum (ATF), Mysuru, has welcomed the Centre’s decision to increase Goods and Service Tax (GST) on cigarettes, cigars, and nicotine-based substitutes from the current 28% to 40%, but expressed disappointment with the reduction in GST on beedis to 18%.

In a statement here on Friday, ATF convenor Vasanthkumar Mysoremath said that the decision on increasing GST on cigarettes, cigars, and other nicotine-based substitutes is certainly welcome, but the reduction in the levy on beedis from the current 28% to 18% is “uncalled for”.

Mr. Mysoremath also made it a point to refer to the guidelines of the World Health Organisation’s Framework Convention on Tobacco Control (FCTC) that provide for levying taxes upto 75% on tobacco products. India, being a signatory, should make full use of the same, said Mr. Mysoremath, while adding that some other countries levy taxes upto 100% to discourage tobacco consumption. “Unfortunately, India is hesitant and even soft-pedalling maximum taxation on tobacco products,” he said.

“Increase in taxes across the board on all tobacco products would have acted as a deterrent, making tobacco addiction uneconomical. Recent studies have pointed at the increase in Non-Communicable Diseases due to the unhealthy habits being pursued by youngsters,” he said.

Citing the Global Adult Tobacco Survey (GATS) in India, Mr. Mysoremath said that 35% or more than a third of adults in the country used tobacco in some form or the other. Among them, 9% smoke, 21% adults use smokeless tobacco, and another 5% smoke as well as use smokeless tobacco,” he said.

Based on the GATS in India, Mr. Mysoremath said that the estimated number of tobacco users in India is 274.9 million with 163.7 million users of smokeless tobacco. While 68.9 million smoke tobacco, another 42.3 million both smoke and use smokeless tobacco, he added.