Clarion call for raising tobacco taxes to 65 per cent

As the Kerala Budget date draws close, eminent social advocates, thinkers and doctors have appealed to the Government to raise taxes on all tobacco products to 65 per cent.  In separate letters to the Hon’ble Finance Minister Shri KM Mani, they have pointed out that taxing tobacco products will not only help save many precious lives but can also bring in much-needed revenues to the state exchequer.

Renowned dramatist, poet and theatre personality Padmabhushan Shri Kavalam Narayana Panikker has said, “Taxing tobacco products will prevent draining away of precious resources on induced and preventable morbidity. With one stroke of your pen, you can save so many lives in Kerala that we can by any means.”

Former Vice Chancellor, Kerala University Dr G Balamohanan Thampy has pointed out, “At a time when our state is facing a huge resource crunch, taxing tobacco products can prove to be a major avenue for resource mobilisation.”  Well-known filmmaker Shri Shaji N Karun has said, “Increasing the price of tobacco through higher taxes is the single most effective way to encourage tobacco users to quit and to prevent children from starting to smoke.”

Economist and Professor, Centre for Development Studies here Dr S Irudaya Rajan, in his letter, has cited the case of Rajasthan to explain how tax increase can lead to greater revenues. “The Rajasthan Government has consistently increased taxes on tobacco products over the last years and the tobacco tax in the state is currently peaking at an all-India high of 65 per cent. Currently the state earns revenue of Rs 312.08 crores from taxes on bidis. Cigarettes also show an upward trend in tax revenues; the earnings rose from Rs 62.80 crores in 2009-10 to Rs 139.23 crores in 2011-12.”

Well-known cardiologist and Head, Department of Cardiology, PRS Hospital
Dr Tiny Nair has said, “As a doctor, I see the impact of tobacco every day. The disease, suffering and death which tobacco cause are terrible. As a doctor, I try to cure those suffering but as a human being, I am convinced that we need to prevent the problem in the first place. I urge to increase VAT on all tobacco products to 65 per cent in our state.”

Justice KP Balachandran; Former Director of Encyclopaedic Publications,
Dr George Onakkoor; Retd. DGP Shri KP Somarajan; Retd Principal, Government Arts College, Thrissur Prof CG Rajagopal; Gender Economist Dr S Radha; Consultant Neurologist, PRS Hospital Dr R Anandam;  Consultant Cardiologist, Attukal Devi Institute of Medical Sciences Dr G Girija; Paediatrician Dr T Suresh Kumar; Chairman, IMA Research Cell Dr Sreejith N  Kumar and Retd. Superintendent of Police Shri KN Janarajan have also written to the Government for raising taxes on all tobacco products to 65 per cent.

There are around 55 lakh tobacco users in Kerala and a study conducted by the Johns Hopkins University, USA has shown that as many as 4.54 lakh precious lives can be saved/early deaths averted if VAT on tobacco products is increased to 65 per cent.