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.
