ATF Mysuru Supports GST Hike on Cigarettes, Criticizes Beedi Tax Cut

Rapid Summary:

• GST increase welcomed: The Anti-Tobacco Forum (ATF), mysuru, has expressed support for the Centre’s decision to raise GST on cigarettes, cigars, and nicotine-based substitutes from 28% to 40%.
• Beedi tax reduction criticized: ATF convenor Vasanthkumar mysoremath voiced disappointment over the reduction of GST on beedis from 28% to 18%, calling it “uncalled for.”
• WHO guidelines cited: Mr. Mysoremath highlighted World Health Organisation’s Framework Convention on Tobacco Control (FCTC) guidelines recommending taxes up to 75% on tobacco products. He pointed out that some countries impose taxes as high as 100%.
• Call for broader taxation policy: Mr. Mysoremath suggested that increasing taxes across all tobacco products could discourage consumption and reduce addiction.
• Tobacco consumption statistics in India: Based on Global Adult tobacco Survey (GATS) data:

– Approximately 35% of adults consume tobacco in some form.
– Of thes,9% smoke tobacco,21% use smokeless forms,and another 5% do both.
– India has an estimated total of 274.9 million tobacco users.

Indian Opinion Analysis:

india’s recent adjustments in GST rates reveal a mixed approach toward tackling tobacco usage domestically. While raising taxes on cigarettes and nicotine substitutes aligns with global health strategies like those outlined by WHO’s FCTC guidelines, the reduced GST rate on beedis may dilute efforts aimed at discouraging widespread habitual use of inexpensive forms like smokeless or locally-produced alternatives.

The ATF’s criticism underscores a key policymaking dilemma-balancing public health priorities against socio-economic considerations tied to industries relying heavily on beedi production. With over one-third of India’s adult population consuming tobacco-many through smokeless products-the decisions carry meaningful implications for national public health objectives and non-communicable disease burden management.The reliance on empirical data such as GATS statistics reinforces the need for informed policymaking targeting all sectors equitably rather than favoring specific segments like beedis disproportionately. A cohesive framework aligning taxation with deterrence goals across all types of tobacco use could enhance its impact while further reinforcing India’s commitment under international agreements like FCTC.

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