WHO wants developing countries to hasten implementation of tobacco control conventions

The World Health Organisation has reiterated the need for countries to focus on accelerating implementation of the Framework Convention on Tobacco Control (FCTC), especially in developing countries.

The WHO FCTC remains one of the most swiftly embraced United Nations treaties, gaining 181 Parties in just over ten years.

These 181 countries are legally obliged to adopt and implement its evidence-based measures for reducing tobacco use.

Since it came into force in 2005 high impact policies have been increasingly introduced by some countries around the world.

But officials believe it is high time more countries especially developing countries to live up to their commitments by accelerating the implementation of the Convention.

For some countries, this means ensuring that they comply with their obligations, such as tightening existing laws to eliminate smoking rooms and point-of-sale advertising.

It has been identified that tobacco not only wrecks health and health systems it is also a drain on economies and the environment.

Every year, according to the WHO, tobacco use kills about 7 million people, and many more people develop serious illnesses such as cancers, chronic respiratory diseases and heart disease.

Tobacco costs the global economy more than 1 trillion US Dollars annually in health spending and lost productivity.

“This is unacceptable”, said the Director-General of the World Health Organisation, Dr Tedros Adhanom Ghebreyesus during his opening speech at the 17th World Conference on Tobacco or Health, in Cape Town, South Africa.

Raising Taxes

He is optimistic this cost can be offset if all governments raised excise taxes by about 80 U.S. cents per pack of cigarettes.

This, according to him, would increase revenues by 47 percent, or 140 billion US Dollars, which could provide much-needed funding for health systems.

It would also increase cigarette prices by an average of 42 percent leading to a 9 percent decline in smoking rates and at least 66 million fewer smokers.

Effects of tobacco production on the environment

In a report published in 2017, the WHO showed that tobacco production is extremely water-intensive.

Large amounts of water are used in areas where tobacco farms and factories are located, which can put severe stress on local water reserves.

In addition, countless trees must be cut down to cure tobacco leaves, and the waste from tobacco also contains over 7000 toxic chemicals, including some that cause cancer.

Emissions from tobacco products contribute thousands of tonnes of human carcinogens, toxicants and greenhouse gases to the environment.

“All of this can be prevented if countries take action to implement the convention. Our message is implement, implement, implement the Convention. It is comprehensive,” Dr Adhanom Ghebreyesus

Call to eliminate the illicit trade in tobacco products

The “legal” cigarette market is bad enough. But the illicit trade of tobacco products creates a shadowy market that not only destroys health, it fuels organised crime and deprives governments of tax revenues.

The Protocol to Eliminate the Illicit Trade of Tobacco Products will help countries put a stop to the situation.

To come into force, the WHO needs six more countries to ratify by July, 2, because so far, only 34 countries have ratified the protocol.

“I urge countries in this room that have not ratified the protocol to do so. I am writing to all Parties to the Convention, encouraging them to ratify the Protocol and bring it into force,” he pleaded.

It is therefore critical for countries to strengthen their efforts and scale up their actions while facing increasing interference from the tobacco industry.

Today, 6 in 10 people globally are protected by at least one of the six tobacco control best practices in the demand reduction tobacco control policies, collectively known as MPOWER.

That’s four times more people than in 2007 when WHO first introduced MPOWER to help countries implement the Convention.

Africa is at the heart of the Sustainable Development agenda but is also seen as a growth market for the tobacco industry.

Africa has made great strides on some health issues, such as HIV/AIDS, but the tobacco problem is in its early stages and is not being given sufficient attention.

But there are many reasons for hope since countries like Ghana, Ethiopia, Gabon, the Gambia have recently increased tobacco taxes.

Kenya is fighting the illicit tobacco trade through an advanced track and trace system;

Senegal implemented four tobacco control measures at the same time, including large graphic health warnings and a comprehensive ban on tobacco advertising, promotion and sponsorship.

Uganda has passed a comprehensive tobacco control law, and 13 of the 34 countries that have ratified the illicit trade protocol are in Africa.

But there is more work to be done.

"We need to ensure that developing countries, some of which have the highest rates of tobacco consumption, take steps to implement the WHO Framework Convention on Tobacco Control. We need more countries to increase tobacco taxes to drive down smoking rates and generate revenues to fund health systems. We need to stop the illicit trade in tobacco products by bringing the WHO FCTC Illicit Trade Protocol into force,” the WHO Director said.

Head of the Secretariat of the WHO FCTC, Dr Vera Luiza da Costa e Silva, told delegates that tobacco control was at the heart of the new Sustainable Development Agenda.

“By accelerating the implementation of the WHO FCTC, the global tobacco control treaty, and becoming Parties to the Protocol to Eliminate Illicit Trade in Tobacco Products, countries can facilitate the achievement of their goals by 2030 and save tens of millions of lives,” said da Costa e Silva.

Meanwhile, President of the 17th WCTOH, Dr Flavia Senkubunge, is optimistic the high quality of science being presented in Cape Town comes at a pivotal moment in tobacco control.

“This confirms that we know what works in tobacco control,” said Dr Flavia Senkubunge.
 

Courtesy: myjoyonline.com

Read more ...

Cigs cheaper under GST

Contrary to popular perception among smokers that cigarettes and other tobacco products would be dearer under the Goods and Services Tax (GST) regime, prices of these products have actually fallen by 7-9%.

The central government issued the notification regarding GST on cigarettes and other tobacco products on July 1, the day the new tax regime came into force. "The clarity on excise duty and other duties has come through after the issuance of the notification," said Deepak Mishra, anti-tobacco campaigner and executive director of Socio-Economic and Educational Development Society (SEEDS).

He added as per the new notification, basic excise duty (BED) and additional excise duty (AED) would not be levied on cigarettes. "Hence the effective taxes on cigarettes of various sizes have declined by 7-9% under the GST," Mishra said, adding the increasing demand for a higher tax on tobacco products in line with the World Health Organisation (WHO) prescriptions has been belied.

Mishra said the notification issued on July 1 has exempted cigarettes from BED and AED. Since there was no notification on national calamity contingent duty (NCCD), it has been assumed that it would continue in the GST regime.

"Cigarettes will be subject to 28% GST, ad valorem cess of 5%, specific cess and NCCD. This means that if retail prices are unchanged, tax per stick of cigarette will reduce by 7-9%," Mishra said.

"The GST regime has been benign towards the smokers of cigarette and 'bidi'. In the country, the cigarette smokers account for 11% of total tobacco consumers, and the remaining 89% belongs to the category of people who smoke 'bidi' and those who chew tobacco. The biggest share (80%) of revenue that the government gets is from the sale of cigarettes," Mishra added.

Mishra said effective low taxation on cigarette and other tobacco items under GST was in sync with the overall trend of decrease in tax on cigarettes for the last three fiscals, beginning with 13% in 2015-16, 10% in 2016-17 and 6% in 2017-18. Prior to this, the annual tax increase on cigarettes was 20%.

Source: Times of India

Read more ...

Rs 19,293 crore tax collected on tobacco in 2016-17 January

Over Rs 19,000 crores have been collected as Central tax on tobacco till January in financial year 2016-17, the government said today. “As reported by the Finance Ministry, the total amount of Central tax collected on tobacco during 2016-17 (till January) is Rs 19,293 crores. The figure for 2014-15 and 2015-16 stand at Rs 22,174 crores and Rs 19,977 crores, respectively,”

Union Health Minister J P Nadda said in a written reply in Rajya Sabha. He said there was no earmarking of funds to the health care sector out of the funds collected from taxes on tobacco.

Replying to another question, Minister of State for Health, Anupriya Patel said that as per the report on tobacco control in India, published in 2004, India is the second largest consumer of unmanufactured tobacco in the world and about 8-9 lakh Indians die of tobacco-related diseases every year. 

“As per the report of ‘Global Adult Tobacco Survey (GATS) India 2009-10, more than one third (35 per cent) of adults in the age group of 15 years and above use tobacco in some form or the other, whereas 33 per cent adult males and 18 per cent adult females in the country consume smokeless tobacco products,” she said.

Anupriya said as per the Global Youth Tobacco Survey 2006, 14.1 per cent of students aged 13-15 years in India use any tobacco product, 4.2 per cent smoke cigarettes and 11.9 per cent use other tobacco products.

Source: Financial Express

Read more ...

Taxation on Tobacco in India - Tool for Tobacco Control

Tobacco is the major factor causing non-communicable fatal diseases in India. Tobacco consumption in India is unique and complex with various forms of smoke and smokeless tobacco. Its use is long-standing and is ingrained among Indians from varying cultural backgrounds. Also its social acceptability poses great challenges for the regulation of tobacco products and the enforcement of tobacco legislation. However, there are other barriers as well that prevent the cessation of this practice such as poverty, illiteracy, lack of awareness, aggressive marketing strategies of giant tobacco companies targeting vulnerable groups, a growing economy and a less than optimal implementation of provisions for tobacco cessation by government agencies. This article focuses on the current state of the Indian population addicted to tobacco use and the various methods used to improve cessation, with a focus primarily on taxation as a crucial measure that encourages abstinence.

Tobacco consumption is the single most important avoidable risk factor in the growth of non-communicable diseases in India (Jha and Chaloupka 1999). Tobacco-accounts for 12% to 25% of the deaths among men in India (Gajalakshmi et al 2003; Gupta et al 2005; Jha et al 2008); one half of tobacco-related deaths occur between the ages of 35 and 69 years—the most economically productive period (WHO 2002).

Tobacco Consumption in India

India is the third largest producer of tobacco and the second highest consumer of tobacco products. There is a broad spectrum of tobacco products, aimed at different socio-economic and demographic categories. Unlike other countries, India is unique in the use of multiple non-cigarette preparations such as beedi (an indigenous form of combustible tobacco) and the extensive variety of oral tobacco products (chewing, quid, and dentifrices). Beedis account for 85% of smoked tobacco (John et al 2010), however, there has been growth in the number of cigarette smokers in the past decade (Joseph 2011) due to a rise in disposable incomes and an increased affordability. Studies have also shown that manufactured cigarettes are displacing beedis (Jha et al 2011). Prevalence estimates vary, with most estimates obtained from the National Family Health Survey–3 (NFHS–3) of 2005–06.

Approximately 10% of the world’s tobacco smokers live in India (WHO 2008). Between the ages of 15 and 49 years, 57% of males and 11% of females consume tobacco in a smoked or non-smoked form. Around 120 million Indians smoke, of these 115 million are males and 5–6 million are females. Fourty percent of rural men and 10% of rural women chew tobacco, 31% of urban men and 5.5% of urban women chew tobacco (John et al 2010). Recent trends in tobacco use are not indicated with certainty. However, the absolute number of male smokers is rising, with male smokers between the ages of 15 and 24 accounting for the largest proportion of the increased consumption (Sharma 2014).

About one million deaths are attributable to smoking-related diseases annually in India (John et al 2010) and on an average, male beedi smokers die six years earlier and female beedi smokers die eight years earlier than their non-smoking counterparts. Male cigarette smokers die an average of 10 years earlier than their non-smoking counterparts. More than half of tobacco-related smoking deaths occur in illiterate sub-populations. Roughly 80% of these deaths occur in rural areas. The risk of death due to chewing tobacco is 15% for males and 30% for females. Healthcare costs are a huge burden for a developing economy like India. Healthcare costs for tobacco-related illness, spent by public and private funds, was about 30,000 crore annually (Reddy and Gupta 2004). Households with a smoker have worse child health outcomes, including lower immunisation rates in children (Rani et al 2004).

Tobacco Control Measures

Cessation is the only practical way to substantially reduce the morbidity and mortality issues associated with tobacco consumption, in the relatively near term. This requires comprehensive tobacco control programmes—including both price and non-price interventions. Although India has ratified the WHO Framework Convention on Tobacco Control (WHO FCTC), implementation of its provisions has been suboptimal. According to the WHO, the six policy measures included in the MPOWER policy, if effectively implemented have the ability to reduce tobacco use, however, tobacco taxes are by far the most effective method of decreasing tobacco consumption especially among the young and lower income sections in emerging economies (WHO 2008, 2014a).

Taxation: Taxation plays a critical role in tobacco control. Tobacco taxation and consumption are inversely related (WHO and IARC 2011); higher taxes are particularly effective with poorer or less educated groups (WHO 2010). Most high-income countries have reduced their overall tobacco consumption, over the years, through increased taxation. France reduced its tobacco consumption by 50%, in a span of just 15 years, from 1990 to 2005 mostly due to a sharp rise in tobacco excise taxation (Hill and Laplanche 2003). Even among several low and middle-income countries of South-East Asia—Bangladesh, Sri Lanka and Thailand—taxes have exceeded 70% on top of the retail price (WHO 2014b).

Unfortunately, India has the lowest taxation rates on tobacco in the Asia–Pacific region—well below the recommendations of the World Bank and the WHO. This creates significant challenges for implementing cessation programmes. Tobacco taxation in India is the most complex tax policies in the world and there is no uniformity. Taxes are based on the type of product, length and quantity of tobacco. Low levels of taxation, with an inefficient tax structure contribute to increased tobacco consumption.

Taxation on cigarettes: A tax of 38% on top of the retail price, is far below the World Bank recommended rate of 65% to 80%, and also it varies with length from less than 65 mm to more than 85 mm. Longer cigarettes are taxed at higher rates, so companies manufacture varying lengths to retain their customer base and consumers shift to the cheaper options.

Taxation on beedi: Handmade beedis are taxed at 12 per 1,000 sticks, machine made beedis are taxed at 30 per 1,000 sticks and an average rate of 9% is applied to the retail price. As a result, nearly 98% of beedis are handmade (Sunley 2008) though mechanisation is available. Also, small-scale beedi manufacturing has been reduced to only 50% of the market with a concomitant increase in household beedi rolling, given that no tax is levied if production is less than two million beedis annually.

Taxation on oral tobacco: There is no set tax on chewing tobacco—this is subject to ad valorem taxes that are based on the value of tobacco products. The literature indicates that reducing oral tobacco consumption through taxes, is not as feasible as reducing smoked tobacco consumption, due to the large and informal market of sub-suppliers, in the case of oral tobacco (Jha et al 2011). This leads to its greater use, and is of particular concern in India due to the disproportionate usage by women and youth and the fact that oral tobacco is a major cause of oral cancer, of which India has become an epicentre. It is of paediatric concern also, because children on the street begin consuming tobacco through chewable forms that are available in sachets (Priya and Lando 2014).

Literature on Tobacco Taxation

Higher taxation of tobacco products is the single most effective intervention to reduce consumption (Jha et al 2008). The following are the consequences of an increased taxation on beedi and cigarette manufacturing, with respect to revenue raise and premature mortality. Raising taxes on beedis to 98 per 1,000 sticks would raise tax revenue of over 36.9 billion and would also prevent 15.5 million deaths in terms of current and future beedi smokers (John et al 2010). Raising cigarette taxes to 3,691 per 1,000 sticks would raise tax revenue of over 146 billion and also prevent 3.4 million deaths in current and future cigarette smokers (John et al 2010). Uniformity in taxation also is indicated. The increased tax revenue could support comprehensive tobacco control programmes, including cessation, and other social and public health programmes such as those in Australia (VicHealth) and Thailand (ThaiHealth) (John et al 2010; WHO 2012).

Economic growth: Taxation policy should be in accordance to income growth, with annual systematic inflation-adjusted increases built into the policy; otherwise increased affordability will lead to an increased consumption. In India, beedis were nearly three times more affordable in 2011 than in 1990, while cigarettes were two times more affordable (Blecher and Van Walbeek 2009). Manufactured cigarettes are also displacing beedis (Jha et al 2011) as a measure of affordability.

In the Indian scenario, high consumption of tobacco is due to easy availability, accessibility and affordability, exacerbated by a lack of health education and awareness as well as, poverty. Tobacco control requires strong political will—to control tobacco production, to enforce strict regulations as stated in the Cigarettes and Other Tobacco Products Act 2003, to be compliant with FCTC regulations and guidelines and to include increased and uniform taxation on smoking tobacco, with an equal consideration on taxing smokeless tobacco.

Commentary by Priya Mohan; Harry A Lando and Panneer Sigamani in the Economic and Political Weekly

Read more ...

Higher tobacco taxes can save 35-45 billion lives in South Asia: Study

Higher taxes on tobacco could reduce its consumption by at least one-third and save about 35 to 45 million lives in South Asia, including India, a study said.

The analysis published in The British Medical Journal said South Asia with a population of 1.1 billion adults has about 170 million adult smokers - and mostly from India - and very low rates of cessation.

The analysis calls on the South Asian countries to implement the World Health Organisation's (WHO) global tobacco control treaty, including high tobacco taxes, smoke-free public spaces, warning labels, comprehensive advertising bans and support for smoking cessation services.

The study was conducted by Prabhat Jha, Director, Centre for Global Health Research at St Michael's Hospital in Toronto.

He said the study looked at 140 million current and future smokers, aged under 35 years (about 33 million of whom are current smokers, aged 25-34 years, and 107 million under 25 years who have not yet started) and 100 million current smokers over 35 years (out of 171 million smokers at 15 years or more).

"Unless large numbers of them stop smoking, at least half of the 140 million young and future smokers would die because of smoking. At least half of these 70 million deaths would occur before the age of 70. Not starting smoking or complete cessation before age 40 would avoid nearly all of these deaths.

"In 2010, most of the roughly 170 million adult smokers in South Asia were male and lived in India. A substantial number of people in India smoke cigarettes and bidis (small, locally grown and mostly unregulated form of smoked tobacco)," the analysis said.

It said in India and Bangladesh, cigarettes have gradually displaced bidis, particularly among younger and illiterate males.

"South Asia has large and growing numbers of tobacco users and very low rates of cessation. Effective implementation of the Framework Convention on Tobacco Control, particularly its tax provisions, could reduce tobacco consumption by at least one-third and save about 35-45 million lives," it said.

Jha said a tripling of the excise taxes, designed in particular to decrease substitution from more expensive to cheaper brands would likely reduce smoking in South Asia by at least one-third.

"The benefits of a one-third reduction in the 100 million current smokers over 35 years depend on their age of cessation. 

Conservatively, such a reduction might avoid about 10-20 million deaths, most of which would be before 2050," Jha said.

"Indeed, the loss of life among Indian male cigarette smokers is as extreme as now observed in prolonged smokers in high-income countries," the study said.

It stated that annual increase in tobacco tax has mostly been below the rate of inflation and income growth, thus cigarettes remain affordable.

"In fact, the stock price of the cigarette industry has risen after ineffective budgets such as the February 2017 budget in India, which increased cigarette taxes by well below the rate of income growth," it said.

The analysis also quoted a report by the Asian Development Bank on five Asian countries, including India, which stated that increasing the price of cigarettes by 50 per cent through excise tax increases of 70-122 per cent would reduce the number of current and future smokers by nearly 67 million and reduce tobacco deaths by over 27 million in the five countries.

"Moreover, about USD 24 billion additional revenue would be generated annually," the analysis quoting the report said.

Noting that "most chewed tobacco products are unregulated" and may contain high levels of toxic and carcinogenic substances, the analysis said that chewing cessation is also uncommon and below 5 per cent at ages 45-59 years in both India and Bangladesh.

Jha added that the price of cigarettes, bidis and chewing tobacco is lower in South Asia than in high-income countries in the West because the excise taxes are so low.

Source: Times of India

Read more ...

Government wants 28 per cent tax on all tobacco products

In a move aimed at lowering consumption of tobacco products, the health ministry has sought to tax all such products, including bidis, at 28 per cent as well as impose higher cess under the new GST regime.

Greeting the step taken by finance ministry to keep aerated drinks, tobacco products, luxury cars and pan masala in the 'demerit goods' category, the health ministry suggested that the cess levied under the GST should be high enough to make these products unaffordable over a period of time.

In an office memorandum issued by the health ministry recently, it suggested that exemptions from the high taxation norms should not be extended to industries with low turnover such as bidi manufacturers as this will allow them to manipulate norms.

"Taking advantage of this exemption, bidi manufacturers closed bigger units and started producing on small scale under different names in a clandestine manner, resulting in huge tax evasions," the memorandum said.

The ministry, which has favoured higher taxes on all tobacco products for long, also highlighted that tiered tax structure for cigarettes needs to be done away with as these slabs are open to manipulation for products substitution and promotion.

Last year in February, health minister J P Nadda had also written to finance minister Arun Jaitley pressing the need to impose a sin tax or a health cess on demerit goods such as tobacco products and aerated drinks.

Nadda had also suggested considering a proposal to earmark the proceeds from the additional surcharge to fund health schemes like the Rashtriya Swasthya Bima Yojna. Tobacco consumption is one of the leading causes for non communicable diseases including different types of cancer, heart disorders and respiratory diseases.

The rising burden of non­-communicable diseases not only undermines India's socio-economic development at macro level but also has huge impact at household, family and individual level. 

As per government estimates, merely the health cost on account of tobacco consumption is pegged at over Rs 10,40,500 crore in 2011 for people aged between 35 to 69 years. Each year, about 10 lakh Indians die from tobacco­related diseases.

Experts say globally there is ample evidence to show that tobacco tax increases are the most effective policy to reduce tobacco use.

Source: Economic Times

Read more ...

പുകയിലയ്ക്ക് പരമാവധി നികുതി വേണം: വിദഗ്ധര്‍ കേന്ദ്രമന്ത്രിക്ക് കത്തയച്ചു

പുകയില ഉല്‍പ്പന്നങ്ങളുടെ വര്‍ഗീകരണം സംബന്ധിച്ചു തീരുമാനമെടുക്കുന്ന, ജിഎസ്ടി സമിതിയുടെ നിര്‍ണായക യോഗം ഫെബ്രുവരി 18നു ചേരാനിരിക്കെ, ബീഡി ഉള്‍പ്പെടെ എല്ലാ പുകയില ഉല്‍പ്പന്നങ്ങളെയും അധമ ഉല്‍പ്പന്നങ്ങളുടെ പട്ടികയിലുള്‍പ്പെടുത്തണമെന്ന് പുകയില നിയന്ത്രണ സംഘടനയായ ടുബാക്കോ ഫ്രീ കേരളയുടെ നേതൃനിരയിലുള്ള വിദഗ്ധര്‍ ആവശ്യപ്പെട്ടു. 

വിവിധ പുകയില ഉല്‍പ്പന്നങ്ങളെ കുറഞ്ഞ നിരക്കിലെ നികുതി സ്‌ലാബില്‍ ഉള്‍പ്പെടുത്തുന്നത് ദുരുപയോഗത്തിനും പുകവലിക്കാര്‍ വില കുറഞ്ഞ പുകയില ഉല്‍പ്പന്നങ്ങളിലേക്കു തിരിയുന്നതിനും ഇടയാക്കുമെന്ന് കേന്ദ്ര ധനമന്ത്രി ശ്രീ. അരുണ്‍ ജയ്റ്റ്‌ലിക്ക് അയച്ച കത്തില്‍ പുകയില നിയന്ത്രണരംഗത്തെ വിദഗ്ധര്‍ ചൂണ്ടിക്കാട്ടി. 

 പുകയില ഉപയോഗവും കാന്‍സറും തമ്മിലുള്ള ബന്ധത്തിന് അടിവരയിടുന്ന തെളിവുകള്‍ നിരന്തരം പുറത്തുവന്നുകൊണ്ടിരിക്കുമ്പോള്‍ ഉപയോഗം നിരുത്സാഹപ്പെടുത്തുന്ന തരത്തില്‍ പുകയില ഉല്‍പ്പന്നങ്ങള്‍ക്ക് ഉയര്‍ന്ന വില ഈടാക്കേണ്ടതുണ്ടെന്ന് തിരുവനന്തപുരം റീജനല്‍ കാന്‍സര്‍ സെന്റര്‍ ഡയറക്ടറും ടുബാക്കോ ഫ്രീ കേരള ചെയര്‍മാനുമായ ഡോ. പോള്‍ സെബാസ്റ്റ്യന്‍ പറഞ്ഞു. കേന്ദ്ര ബജറ്റില്‍ പുകയില ഉല്‍പ്പന്നങ്ങള്‍ക്കുള്ള തീരുവ വര്‍ധന ആറു ശതമാനമായി പരിമിതപ്പെടുത്തിയത് അങ്ങേയറ്റം നിരാശാജനകമാണ്. വില കൂടിയ ഉല്‍പ്പന്നത്തില്‍നിന്നു വില കുറഞ്ഞവയിലേക്കുള്ള മാറ്റം തടയാനായി എല്ലാ പുകയില ഉല്‍പ്പന്നങ്ങള്‍ക്കും ഒരേ നിരക്കില്‍ നികുതി ഏര്‍പ്പെടുത്തണമെന്നും അദ്ദേഹം നിര്‍ദേശിച്ചു. 

പ്രതീക്ഷിക്കപ്പെട്ട 10-15 ശതമാനം വര്‍ധനയ്ക്കു പകരമുണ്ടായ വെറും ആറു ശതമാനം വര്‍ധന പുകയില വ്യവസായത്തിന് അനുഗ്രഹമായിരിക്കുകയാണെന്ന് ജോധ്പൂര്‍ ഐഐടി അസിസ്റ്റന്റ് പ്രഫസര്‍ ഡോ. റിജോ എം.ജോണ്‍ പറഞ്ഞു. വരാനിരിക്കുന്ന ചരക്കുസേവന നികുതി നിര്‍ണയത്തില്‍ എല്ലാ പുകയില ഉല്‍പ്പന്നങ്ങള്‍ക്കും 28 ശതമാനത്തിന്റെ പരമാവധി അധമനികുതിയും പരമാവധി ഉയര്‍ന്ന സെസും ഏര്‍പ്പെടുത്തിയില്ലങ്കില്‍ രാജ്യത്തെ ആരോഗ്യമേഖലയ്ക്ക് വന്‍ തിരിച്ചടിയുണ്ടാകുമെന്നും അദ്ദേഹം ചൂണ്ടിക്കാട്ടി. 

 വിവിധ പുകയില ഉല്‍പ്പന്നങ്ങള്‍ക്കു മേല്‍, അധിക എക്‌സൈസ് തീരുവയും അടിസ്ഥാന എക്‌സൈസ് തീരുവയുമുള്‍പ്പെടെ, മൊത്തം എക്‌സൈസ് തീരുവയില്‍  ആറു ശതമാനം വര്‍ധന മാത്രമാണ് കേന്ദ്രബജറ്റില്‍ പ്രഖ്യാപിച്ചിട്ടുള്ളത്. കടലാസ് തെറുപ്പുബീഡികളുടെ എക്‌സൈസ് തീരുവയില്‍ 25 ശതമാനം വര്‍ധനയാണു വരുത്തിയത്. മൊത്തം ബീഡി വിപണിയില്‍ കടലാസ് തെറുപ്പു ബീഡികള്‍ തുച്ഛമായ സാന്നിധ്യമാണ്. രാജ്യത്തു വിറ്റഴിയുന്ന മൊത്തം ബീഡി ഉല്‍പ്പന്നങ്ങളുടെ 98 ശതമാനവും കയ്യടക്കുന്നത് ഇലയില്‍ തെറുക്കുന്ന ബീഡികളാണ്.  

ഗ്ലോബല്‍ അഡല്‍ട്ട് ടുബാക്കോ സര്‍വേ(ഗാറ്റ്‌സ്) പ്രകാരം ഇന്ത്യയില്‍ ഏറ്റവും വില്‍ക്കപ്പെടുന്ന പുകയില ഉല്‍പ്പന്നമാണു ബീഡി. ആകെ പുകയില ഉപഭോഗത്തിന്റെ 64 ശതമാനമാണിത്. ബീഡി വലിക്കുന്നവരില്‍ ഭൂരിപക്ഷവും നിര്‍ധനരാണ്. പാവപ്പെട്ടവന്റെ സന്തോഷമെന്നു കണക്കാക്കപ്പെടുന്ന ബീഡി, യഥാര്‍ഥത്തില്‍ അവനെ നശിപ്പിക്കുകയാണെന്നും ഉപഭോഗം കുറയ്ക്കാനായി കനത്ത നികുതി ഏര്‍പ്പെടുത്താത്തത് ദ്രോഹകരമായ നടപടിയാണെന്നും കത്തില്‍ പറയുന്നു.   

 പുകയില ഉപയോഗം മൂലമുള്ള ദുരന്തത്തെ ചെറുക്കാന്‍ ഏറ്റവും ഫലപ്രദമായ മാര്‍ഗം പുകയില ഉല്‍പ്പന്നങ്ങളുടെ നികുതി വര്‍ധനയാണെന്ന് ലോകാരോഗ്യ സംഘടന വ്യക്തമായി നിര്‍ദേശിക്കുന്നുണ്ട്. വില്‍പ്പന വിലയുടെ 75 ശതമാനമെങ്കിലും നികുതി ഈടാക്കണമെന്നും സംഘടന നിര്‍ദേശിക്കുന്നു. 

Read more ...

നികുതിവര്‍ധനയിലൂടെ പുകയില നിയന്ത്രണം: ഓസ്‌ട്രേലിയന്‍ മാതൃക അനുയോജ്യം

പുകയില ഉല്പന്നങ്ങള്‍ക്ക് കനത്ത നികുതി ചുമത്തണമെന്ന ആവശ്യം സംസ്ഥാനത്ത് നിലനില്‍ക്കെ ലോകാരോഗ്യസംഘടനയുടെ നിര്‍ദ്ദേശപ്രകാരം ഇത്തരമൊരു നടപടി സ്വീകരിച്ച് ഓസ്‌ട്രേലിയ ലോകരാഷ്ട്രങ്ങള്‍ക്ക് മാതൃക കാട്ടി. ചരക്കുസേവനനികുതി (ജിഎസ്ടി) യെക്കുറിച്ച് ഗൗരവമായ ചര്‍ച്ച നടക്കുന്ന ഈ സമയത്ത് വര്‍ദ്ധിച്ച നികുതിയുട ഓസ്‌ട്രേലിയന്‍ മാതൃക പിന്തുടരാവുന്നതാണെന്ന്  ചൂണ്ടിക്കാണിക്കപ്പെടുന്നു. 

ചരക്കുസേവന നികുതിയും എക്‌സൈസ് തീരുവയും ഒന്നിച്ചു ചുമത്തുന്നതിലൂടെ പുകയില ഉല്‍പ്പന്നങ്ങളുടെ വില ഉയര്‍ത്തി  വരുമാനം വര്‍ദ്ധിപ്പിക്കുകയും ഉപയോഗം കുറച്ച് പൊതുജനാരോഗ്യം സംരക്ഷിക്കുകയും ചെയ്യുന്ന  ഫലപ്രദമായ പുകയില നിയന്ത്രണ രീതിയാണ് ഓസ്‌ട്രേലിയ സ്വീകരിച്ചിരിക്കുന്നത്.  

കഴിഞ്ഞ ഒരു ദശകമായി ഓസ്‌ട്രേലിയയില്‍ പുകവലി നിയന്ത്രണം കാര്യക്ഷമമായി നടക്കുന്നതിനു പിന്നില്‍ ഈ സംയുക്ത നികുതിയുടെ ഭാരമാണ്. 2003ലുണ്ടായിരുന്ന പുകയിലയുടെ വ്യാപനത്തില്‍ 25 ശതമാനം കുറവാണ് 2015ല്‍ ഇവിടെയുണ്ടായത്. 

പ്രായപൂര്‍ത്തിയായവരില്‍ 15.8 ശതമാനം മാത്രമാണ് പുകയിലയുടെ വ്യാപനം.  ജിഎസ്ടി, എക്‌സൈസ് തീരുവ, കസ്റ്റംസ് തീരുവ എന്നിവ പണപ്പെരുപ്പത്തിന്റെ തോതനുസരിച്ച് ഉചിതമായി ക്രമപ്പെടുത്തിയുള്ള നികുതി സമ്പ്രദായം ഫലപ്രദമായതിന്റെ വിജയമാണ് ഓസ്‌ട്രേലിയയില്‍ കാണുന്നതെന്നു വ്യക്തം. 

16 വര്‍ഷം മുന്‍പാണ് ഓസ്‌ട്രേലിയയില്‍ പുകയില ഉല്‍പ്പന്നങ്ങള്‍ക്ക് പത്തുശതമാനം ജിഎസ്ടി ഏര്‍പ്പെടുത്തിയത്. ഇതോടെ സിഗരറ്റ് ഉല്‍പ്പന്നങ്ങളുടെ പ്രതിവര്‍ഷ ഉപഭോഗം 2000-01ല്‍ 28,607 ദശലക്ഷമായിരുന്നത് 2010-2011ല്‍ 24,725 ദശലക്ഷമെന്ന നിലയിലേക്കു താണതായാണ് കണക്ക്. 1999നും 2010നുമിടയ്ക്ക് എക്‌സൈസ്, കസ്റ്റംസ് തീരുവകളില്‍ വര്‍ധന വരുത്തിയിരുന്നില്ല. 2010ല്‍ എക്‌സൈസ് തീരുവ ഗണ്യമായി കൂട്ടി. തൊട്ടടുത്ത വര്‍ഷങ്ങളില്‍ പണപ്പെരുപ്പവുമായി പൊരുത്തപ്പെടുത്താന്‍ വില കൂട്ടിക്കൊണ്ടിരിക്കുകയും ചെയ്തു. 

നിലവില്‍ പുകയില ഉല്‍പ്പന്നങ്ങള്‍ക്ക് 2003ലുണ്ടായിരുന്ന എക്‌സൈസ് നിരക്കിന്റെ ഇരട്ടിയാണ് ഇപ്പോള്‍ ഓസ്‌ട്രേലിയയില്‍. ഇടത്തരം സിഗരറ്റുകള്‍ക്ക് ചില്ലറവില്‍പ്പന വിലയുടെ 66 ശതമാനമാണ് എക്‌സൈസ് തീരുവ. ഇതിനൊപ്പം ജിഎസ്ടി കൂടി ചുമത്തുമ്പോള്‍ ചില്ലറ വില്‍പ്പന വിലയുടെ 70 ശതമാനമെങ്കിലുമെന്ന ലോകാരോഗ്യ സംഘടനയുടെ മാനദണ്ഡ പ്രകാരമുള്ള തലത്തിലേക്ക് സിഗരറ്റ് വില ഉയരുന്നുണ്ട്. 

ജിഎസ്ടി വഴിയുള്ള നികുതി വരുമാനം 2011ല്‍, 2001ലേതില്‍നിന്ന് 56 ശതമാനത്തോളം കൂടിയതായാണ് കണക്ക്. എക്‌സൈസ്, കസ്റ്റംസ്, ജിഎസ്ടി എന്നിവ  ചേര്‍ത്തുള്ള നികുതി വരുമാനം ഇതേ കാലയളവില്‍ 50.8 ശതമാനമാണു കൂടിയതായും കണക്കാക്കപ്പെടുന്നു. 

പുകയില ഉപഭോഗം ഏറ്റവും ഫലപ്രദമായി നിയന്ത്രിക്കാനുള്ള മാര്‍ഗം അധിക നികുതി ചുമത്തി വില വര്‍ധന സൃഷ്ടിക്കുകയാണെന്നത് ഓസ്‌ട്രേലിയന്‍ അനുഭവം വ്യക്തമാക്കുന്നു. പുകയില ഉപഭോഗം ഏറ്റവും ദോഷകരമായി ബാധിക്കുന്ന യുവാക്കള്‍, ഗര്‍ഭിണി, നിര്‍ധനര്‍ എന്നിവരില്‍ പുകവലി കുറയ്ക്കാനുള്ള എളുപ്പവഴിയും ഇതു മാത്രമാണ്.

പുകയില നിയന്ത്രണത്തിന്റെ പേരില്‍  ലോകാരോഗ്യ സംഘടന ഓസ്‌ട്രേലയിയയെ പ്രശംസിച്ചിട്ടുമുണ്ട്. പുകയില ഉല്‍പ്പന്നങ്ങള്‍ അച്ചടിരഹിത പാക്കിങ്ങില്‍ വില്‍ക്കാനായി നിയമം കൊണ്ടുവന്ന ആദ്യരാജ്യം കൂടിയാണ് ഓസ്‌ട്രേലിയ. ഈ നിയമത്തിലൂടെ വെറും മൂന്നുവര്‍ഷം കൊണ്ട് പുകയില ഉപഭോഗത്തില്‍ 19.6 ശതമാനം കുറവു വരുത്താനും ഓസ്‌ട്രേലിയയ്ക്കു കഴിഞ്ഞു. ഇതും ഇന്ത്യയ്ക്ക് മാതൃകയാക്കാവുന്നതാണെന്ന് ചൂണ്ടിക്കാണിക്കപ്പെടുന്നു. 

Read more ...

പുകയില ഉത്പ്പന്നങ്ങള്‍ക്ക് ഉയര്‍ന്ന ജിഎസ്ടി വേണമെന്ന ആവശ്യത്തിനു ശക്തിയേറുന്നു

ജിഎസ്ടി കൗണ്‍സിലിന്റെ നിര്‍ണായക യോഗം നവംബര്‍ മൂന്നിനു നടക്കാനിരിക്കെ എല്ലാ പുകയില ഉത്്പ്പന്നങ്ങള്‍ക്കും ഏറ്റവും ഉയര്‍ന്ന നികുതി നിരക്ക് നടപ്പാക്കണമെന്നാവശ്യപ്പെട്ട് ഡോക്ടര്‍മാരും രോഗികളും സാമ്പത്തികവിദഗ്ധരും ഒന്നാകെ രംഗത്തെത്തി.

ഇപ്പോള്‍ നിര്‍ദേശിച്ചിരിക്കുന്ന 26 ശതമാനം പാപനികുതി (സിന്‍ ടാക്‌സ്) രാജ്യത്തിന്റെ ആരോഗ്യമേഖലയ്ക്കും സാമ്പത്തികമേഖലയ്ക്കും ഒരുപോലെ ദോഷകരമാണെന്ന് ഇവര്‍ പറയുന്നു. പുകയില ഉത്പ്പന്നങ്ങള്‍ കുറഞ്ഞ വിലയ്ക്ക് ലഭ്യമാകുമ്പോള്‍ ഉപഭോഗം വിര്‍ദ്ധിക്കുകവഴി ഇത് ഹൃദ്രോഗങ്ങള്‍, കാന്‍സര്‍ തുടങ്ങിയ മാരക രോഗങ്ങളിലേക്ക് നയിക്കുന്നു. രാജ്യത്തിന് പുകയില ഉത്പ്പന്നങ്ങളില്‍ നിന്നുള്ള വരുമാനം ഗണ്യമായി കുറയുമെന്നും അവര്‍ ചൂണ്ടിക്കാട്ടി.

ലോകാരോഗ്യ സംഘടനയുടെ പഠനങ്ങളനുസരിച്ച് പുകയില ഉപഭോഗം കുറയ്ക്കുന്നതിന് തെളിയിക്കപ്പെട്ട മാര്‍ഗം പുകയില ഉത്പ്പന്നങ്ങള്‍ക്കുമേല്‍ കനത്ത നികുതി ഏര്‍പ്പെടുത്തുന്നതാണെന്ന്, ദീര്‍ഘകാലമായി  പുകയിലയ്ക്ക് ഏറ്റവും ഉയര്‍ന്ന നിരക്കില്‍ നികുതി വേണമെന്ന ലക്ഷ്യത്തോടെ   പ്രവര്‍ത്തിക്കുന്ന പിആര്‍എസ് ആശുപത്രി കാര്‍ഡിയോളജി വിഭാഗം മേധാവി ഡോ. ടൈനി നായര്‍ പറഞ്ഞു. കുറഞ്ഞ ജിഎസ്ടി നിരക്ക് പുകയില ഉപഭോഗവും അതുവഴി ആരോഗ്യപരിപാലന ചെലവും വര്‍ദ്ധിപ്പിക്കും. പുകയുള്ളതും പുകരഹിതവുമായ എല്ലാ പുകയില ഉത്പ്പന്നങ്ങള്‍ക്കും ജിഎസ്ടി കൗണ്‍സില്‍ ഏറ്റവും ഉയര്‍ന്ന നിരക്ക് നികുതി ഏര്‍പ്പെടുത്തണം. ഇതുവഴി അമൂല്യമായ ജീവനുകളെ അകാല ദുരിതങ്ങളില്‍നിന്നും മരണത്തില്‍നിന്നും സംരക്ഷിക്കാനാവുമെന്നും ഡോ. ടൈനി നായര്‍ കൂട്ടിച്ചേര്‍ത്തു.

നിലവിലെ എക്‌സൈസ് നികുതി നിലനിര്‍ത്തിക്കൊണ്ടുതന്നെ പുകയില ഉത്പ്പന്നങ്ങള്‍ക്ക് 26 ശതമാനം പാപനികുതി ഏര്‍പ്പെടുത്തുന്ന സാഹചര്യത്തിലും 40 ശതമാനം ജിഎസ്ടി-പാപനികുതിയെ  അപേക്ഷിച്ച് പുകയിലയില്‍നിന്നുള്ള നികുതി വരുമാനം അഞ്ചിലൊന്നോളം കുറയുമെന്ന് (17 ശതമാനം, ഏകദേശം 10,510 കോടി

രൂപ) ജോധ്പൂര്‍ ഐഐടിയിലെ അസിസ്റ്റന്റ് പ്രൊഫസര്‍ ഡോ. റിജോ ജോണ്‍ പറഞ്ഞു. 26 ശതമാനം പാപനികുതി വരുമാനതുല്യത നിലനിര്‍ത്താന്‍ ആവശ്യമായ നിരക്കിനേക്കാള്‍ വളരെ താഴെയാണ്. ഇത് എല്ലാ പുകയില  ഉത്പ്പന്നങ്ങള്‍ക്കുമുള്ള നികുതി ഗണ്യമായി കുറയ്ക്കും. പുകയിലെ ഉല്പന്നങ്ങള്‍ക്ക് നിലവിലുള്ള മൂല്യവര്‍ദ്ധിത നികുതി (വാറ്റ്) 26 ശതമാനത്തിലും കൂടുതലാണെന്നും ഡോ.റിജോ ജോണ്‍ കൂട്ടിച്ചേര്‍ത്തു.

പുകയില ഉല്പന്നങ്ങള്‍ക്ക് അടിമപ്പെട്ടിരിക്കുന്നവരെ പിന്തിരിപ്പിക്കുന്നതിനും പുതിയ ഉപഭോക്താക്കളുണ്ടാകുന്നത് തടയുന്നതിനുമായി എല്ലാ പുകയില ഉത്പ്പന്നങ്ങളുടെയും വില ഉയര്‍ത്തിനിര്‍ത്തണമെന്ന് പുകയില മൂലമുള്ള വായിലെ കാന്‍സര്‍ പിടിപെട്ട സാജു പറയുന്നു. 20 വയസു കഴിഞ്ഞപ്പോള്‍ സിഗററ്റ് ഉപയോഗിച്ചുതുടങ്ങിയ താന്‍ പിന്നീട് ദിവസവും മൂന്നും നാലും സിഗററ്റുകള്‍ക്കുപുറമെ മറ്റ് പുകയില ഉത്പ്പന്നങ്ങള്‍ക്കും അടിമയായി. മുപ്പതാമത്തെ വയസില്‍ വായിലെ കാന്‍സര്‍ പിടിപെട്ട തന്നെ കീമോതെറാപ്പി, ശസ്ത്രക്രിയ, റേഡിയേഷന്‍ മുതലായവയ്ക്ക് വിധേയനാക്കി.  ആലപ്പുഴ വണ്ടാനം മെഡിക്കല്‍ കോളജിലായിരുന്നു ചികിത്സ.  ഒരു വര്‍ഷത്തോളം നീണ്ടുനിന്ന ചികിത്സയ്ക്ക് മൂന്നുലക്ഷം രൂപയിലേറെ  വേണ്ടിവന്നുവെന്ന് സാജു പറഞ്ഞു.

 എന്തിനായിരുന്നു കഷ്ടപ്പെട്ട് സമ്പാദിച്ച പണം പുകയില ഉത്പ്പന്നങ്ങള്‍ക്കുവേണ്ടി ചെലവഴിച്ചത് എന്ന് ആലോചിക്കാറുണ്ടെന്ന് സാജു പറയുന്നു. വ്യക്തിപരമായും കുടുംബത്തിനും അതുമൂലം ക്ലേശങ്ങളും ദുരന്തവുമാണ് ഉണ്ടായത്. താന്‍ നേരിട്ട വേദനയും സംഘര്‍ഷവും മറ്റാരും നേരിടാതിരിക്കാന്‍ വേണ്ടിയാണ് പുകയില ഉല്പന്നങ്ങളുടെ വില ഉയര്‍ത്തണമെന്ന് പറയുന്നതെന്ന് സാജു വ്യക്തമാക്കി.

പുകയിലയും അതുപോലെയുള്ള ഉത്പ്പന്നങ്ങളും വഴി സമൂഹത്തിനുണ്ടാകുന്ന ദൂഷ്യഫലങ്ങള്‍ ഇല്ലാതാക്കുന്നതിന് വഴി കണ്ടെത്തുക,   വിലവിര്‍ദ്ധനവുവഴി ഉപഭോഗം കുറയ്ക്കുക എന്നീ ലക്ഷ്യങ്ങളോടെയാണ് ഈ ഉല്പന്നങ്ങള്‍ക്ക് പാപനികുതി ഏര്‍പ്പെടുത്തുന്നത്. നിലവിലുള്ള എക്‌സൈസ് തീരുവയും  സംസ്ഥാന സര്‍ക്കാര്‍ ഏര്‍പ്പെടുത്തുന്ന നികുതികളുമല്ലാതെ  40 ശതമാനം പാപനികുതി അഭികാമ്യമാണെന്ന് നിര്‍ദ്ദേശിക്കപ്പെടുന്നു. 

Read more ...

United call for highest tax rate on all tobacco products in new GST regime

Proposed 26 per cent sin tax rate on tobacco to negatively impact revenue and public health 

Ahead of the crucial meeting of the GST Council on Thursday, November 3, a cohort of victims, doctors and economists have banded together to appeal to the Council for the inclusion of all tobacco products in the highest tax slab.

The proposed ‘sin tax’ rate of 26 per cent would be detrimental to both public health and the national economy, they argue. The proposed rates would make tobacco products more affordable, thereby boosting consumption and leading to an increase in the incidence of grave, even terminal, conditions, including cardiovascular diseases and cancers. In addition, they point out that the revenue from tobacco products would be significantly reduced.

Saju, a tobacco-induced oral cancer victim, says that the prices of all tobacco products should be kept high to both dissuade current users and prevent the initiation of new users. “I smoked my first cigarette in my early 20s. Gradually, I was drawn to smoking and I would smoke three-four cigarettes in addition to using smokeless tobacco products,” he said.

Tobacco use made Saju an oral cancer patient at the young age of 30. He was treated with chemotherapy, surgery and radiation at Vandanam Medical College, Alappuzha, and is on regular follow-ups. The treatment spread over a year cost around Rs three lakh.

“When I think back, I ask myself why I spent my hard-earned money on tobacco products. It gave my family and me only suffering and trauma. No one should have to undergo the pain and stress I suffered,” said Saju, who is now in his early 30s.

Dr Tiny Nair, Head of the Department of Cardiology, PRS Hospital, has long campaigned for imposing the highest tax rates on tobacco products. He said, “Taxing tobacco products is a proven way to reduce consumption as WHO studies have shown. A lower GST rate can accentuate the tobacco epidemic, driving up healthcare costs. The GST Council should tax all smoking and smokeless tobacco products at the highest rate. This way, irreplaceable lives can be safeguarded from untimely morbidity and mortality.”

According to Dr Rijo John, Assistant Professor, IIT Jodhpur, “Compared to a GST sin tax rate of 40 per cent, imposing a 26 per cent sin rate would reduce total tobacco tax revenue by almost one-fifth (17 per cent, or roughly Rs 10,510 crore) even if the government retains the current excise on tobacco products post GST.”

“Clearly, a 26 per cent sin rate will be well below the rate required to maintain a revenue neutral position for tobacco and will significantly reduce tax burden on all tobacco products since the existing average VAT rates themselves are higher than 26 per cent on most tobacco products,” added Dr John, a reputed researcher on tobacco taxation.

The rationale for a sin tax is two-fold, to pay for the damage caused to society by products like tobacco and second, to reduce usage by increasing price.  A 40 per cent sin tax rate combined with the existing excise tax and top-up state taxes on tobacco appears to be the best scenario for public health and revenue. 

Read more ...

GST regime has ushered in reduced tobacco consumption in Australia

In line with Kerala’s demand for a higher tax burden on tobacco, an analysis of taxation structures in Australia – a world leader in tobacco control – shows that a combination of GST and central specific excise duty has resulted in reduced consumption of tobacco in the country. 

This combination has been a critical reason for Australia’s success at decreasing the prevalence of tobacco use over the past decade. Available data shows that the country has been able to reduce tobacco prevalence by 25 per cent since 2003, to only 15.8 per cent of adults in 2015 – owing to a judicious mix of tobacco control measures including GST and central specific excise and customs duty, adjusted to meet inflation levels.

GST on tobacco came into force in Australia at the rate of 10 per cent on July 1, 2000. The estimated consumption of tobacco products including cigarettes, cigars, and contraband cigarettes fell from 28,607 million in the year 2000-01 to 24,725 million in 2010-11. 

Between 1999 and 2010, there was no increase in either tobacco central specific excise or customs duty on tobacco products apart from adjustments for consumer price index (CPI). The specific central excise on tobacco products was significantly increased in 2010, with further increases in recent years, on top of annual adjustments for inflation. 

Today, the central excise on cigarettes, cigars, and pipe tobacco has more than doubled its value in 2003, and central excise represents as much as 66 per cent of the retail price of economy brands of cigarettes. Combined with the GST, the tax burden on cigarettes is close to World Health Organisation (WHO) standards.

Estimations of revenue from GST also show a more than 56 per cent increase from 783.27 million dollars in 2001 to 1,225.36 million dollars in 2011.Total estimated revenue from excise, customs duties and GST on tobacco products revealed a 50.8 per cent increase during the same period (from 5,797.21 million dollars in 2001 to 8,742.74 in 2011).

The Australian experience demonstrates that the most direct and effective method for reducing tobacco consumption is to increase the price of tobacco products through tax increases. Higher taxes are particularly effective in reducing tobacco use among vulnerable population groups, such as the youth, pregnant women, and low-income smokers.  

The WHO has applauded and acknowledged Australia as a global leader in tobacco control. In 2011, Australia became the first country to pass legislation requiring all tobacco products to be sold in plain packaging. This legislation has brought down tobacco consumption by a staggering 19.6 per cent in just almost three years, per a 2015 news report. 

Read more ...

Appeal to GST Council for highest tobacco tax

Concerned by 2015 World Health Organisation (WHO) Global Tobacco Epidemic report that finds India to be among the very few countries where cigarettes have become more affordable over the past years, Tobacco Free Kerala, along with other tobacco control groups in the country have appealed for the highest tax on tobacco to the GST Council.

The appeal is for the highest possible tax rate under GST on all types of tobacco including cigarettes, bidis, smokeless tobacco, and pan masala in order to discourage their consumption and addiction amongst Indians and safeguard public health. 

This is in the light of the WHO’s articulation that the most direct and effective method for reducing tobacco consumption is to increase their price through tax increases. Higher taxes are particularly effective in reducing tobacco use among vulnerable populations, such as youth, pregnant women, and low-income smokers. An increase in tobacco prices by 10 per cent decreases tobacco consumption by 4 percent in high-income countries and by about 6 per cent in low-and middle-income countries.

India has the second largest number of tobacco users in the world with 275 million or 35% of all adults in India. Each year, about 1 million Indians die from tobacco-related diseases and if current trends continue, tobacco will account for 13% of all deaths in India by 2020. Tobacco-use imposes enormous health and economic burden on the country as tobacco-attributable direct medical costs alone are around 21% of national health expenditure. 

According to Dr. Rijo John of IIT Jodhpur, “A recent report from WHO shows that current cigarette taxes as a percentage of retail prices in India are lower than even neighbouring countries such as Sri Lanka and Bangladesh and rank 80th in the world. GST at 40% coupled with central excise duty at the current levels would just about maintain the current tax burden on tobacco products. It is also important to allow states to maintain their right to impose top-up taxes on tobacco products, in order to actually make tobacco and tobacco products less affordable over time.”

Tobacco taxation in India is way below global standards. The current rates for cigarettes and smokeless is significantly less than that recommended by the World Bank’s 2/3rd (tax should be 67% of retail product price) and the WHO (tobacco excise taxes should account for at least 70% of the retail price).   

The current taxation system differentiates between various forms of tobacco products (such as bidis, smokeless tobacco and cigarettes) while imposing taxes.

Bidis, which comprise 48 percent of the tobacco market - as compared to chewing tobacco, which is 38 percent and cigarettes 14 percent - have been subjected to very low central and state taxes under the false pretext of protecting bidi rollers’ livelihood. 

Shri Nazim Ansari, Secretary Abul Kalam Azad Jan Sewa Sansthan, a representative of around 6,000 bidi workers in Uttar Pradesh said, “We strongly support the highest level of tax for bidis under GST and petition that some of these bidis taxes are used to improve our wages/living conditions as well as provide alternative livelihoods”. 

Shri Ashim Sanyal, Chief Operating Officer, Consumer Voice, a voluntary consumer organisation said, “The GST regime should ideally act as a deterrent to the consumption of health hazard causing substances such as cigarettes and bidis  through higher taxes under GST without any differentiations in the interest of vulnerable sections.”  

Read more ...

From a smoker to a smokeless tobacco user: Study

Even as the state and the country is preparing for the next round of the Global Adult Tobacco Survey (GATS), a recent study based on the current edition of this globally followed survey has found that switching to equally harmful smokeless tobacco use is the most common smoking cessation method.

The study by Achutha Menon Centre for Health Science Studies of Sree Chitra Tirunal Institute for Medical Sciences and Technology, Trivandrum shows that more than a third of the former smokers in India reported switching to smokeless tobacco for quitting smoking. The study has been published in a recent edition of the international peer-reviewed journal ‘Public Health’.

GATS 2009-10 posed a question to all 2035 successful quitters on the method they used for cessation. Among the options given to the respondents were smoking cessation clinic; nicotine replacement therapy; a quit line or a smoking telephone support line; and switching to smokeless tobacco. The majority 44.4 per cent of total successful quitters including 50.8 per cent men and 8.7 women reported switching to smokeless tobacco use. 

The GATS was conducted covering all the 29 states and two union territories in the country. This nationally representative household survey covered 69,296 individuals aged 15 years and above using a standardised methodology.

Highlighting the policy implications, Dr KR Thankappan, Prof and Head, Achutha Menon Centre and principal researcher of the study said, “Switching to smokeless tobacco is not a safer option as it is equally harmful as smoking. Coordinated measures including high levels of taxation on all tobacco products, strict enforcement of 85 per cent graphic warnings, and concerted awareness generation on harms of smokeless tobacco products is very important.”

Specifically for Kerala, he called for strict enforcement of the ban on pan masala and gutkha containing tobacco or nicotine, steps to combat smuggling of these products and targeted awareness building for the migrant population who are among the prime users of smokeless tobacco products.

Senior Project Fellow, Achutha Menon Centre and co-author of the study Dr GK Mini said, “Across the country, smokeless tobacco use surpasses smoking. If switching over is also added, the disease burden from smokeless tobacco use will be compounded. Studies have shown that smokeless tobacco users have a more than three-fold higher risk for cancer.”

As per GATS 2009-10, the number of adult current users of smokeless tobacco in India is 206.0 million, much higher than the number of current tobacco smokers of 111.2 million.

GATS is conducted once in five years; the next round is slated for 2016-17. In India, it is conducted under the coordination of the Union Ministry of Health & Family Welfare with technical assistance from the World Health Organisation.

Read more ...

Healthy, wealthy and wise: Why it’s important to invest in health

India’s policies on tobacco control perhaps best reflect the complexities that define the nation, discovered Dr Henk Bekedam when he switched on the television after arriving in Delhi as World Health Organisation Representative to India four months ago.

“I’m still amused when I see health warnings with scenes of someone smoking -- I don’t think I’ve haven’t seen it in any other country – and it shows high awareness, but despite that, India lags in two major issues of tobacco control, tobacco taxation and pictorial warnings,” says Dr Bekedam.

As an economist and medical doctor, he is more than familiar with complexity. The Dutch national has worked as a physician, obstetrician, gynaecologist, paediatrician and civil servant in Africa for seven years before doing a masters in economics at the London School of Economics. He joined the WHO in 1996, and his postings took him to China during the SARS outbreak in 2003 and to Cambodia to help government rebuild health systems destroyed by the Khmer Rouge.

Increase tobacco taxes

India’s new law that has made it mandatory for pictorial health warnings to cover 85% of the tobacco packages gets his approval, but its reluctance to substantially raise tobacco taxes offends both his economist and public health specialist sensibilities. “I’m very critical on tobacco taxation (policies in India). It’s one of the most efficient tools to stop people from smoking and a strong deterrent for deters people with some financial difficulty, mainly the young and the poor,” he says.

“It’s a win-win situation – your revenue goes up and people stop using something that may kill them, but in India, this knowledge is not being used properly,” says Dr Bekedam. “The increase in tobacco taxation has been very gradual, it’s actually less than inflation. And then there are exemptions – the tax on bidis is very, very little. So people who can’t afford cigarettes move to the cheaper product. Not raising taxes is almost like targeting the poor by making their access to something that can kill so easy. And I think it is very, very unfortunate,” he says.

“If you try to control tobacco use, there’s always this fight. The industry says you’re denying people something they like, people will lose jobs, revenue will fall etc, but it is for the government to decide whether it wants people to have easy access to something that can kill or not,” he says.

Health security drives consumption

“India has been neglecting health for quite some time and I don’t think there are very strong systems in place,” says Dr Bekedam. Investment in public health infrastructure must start now to have it in place by 2030.

Increasing public health spend using innovative solutions is a start. “The public health expenditure is a very low 1.1%, which puts India in the bottom quarter in the world in providing support to health. This has major consequences. Life expectancy is just one issue. A Harvard study found one extra year of life expectancy is equal to 4% GDP growth,” he says.

“If you do not invest in health, you put yourself at economic risk. Look at how Ebola devastated west Africa,” says Dr Bekeman. “What I like about the Modi government is its focus on economic growth, but what is not well understood is that if 60 million people are pushed into poverty because of healthcare bills, you can’t grow economically,” he says.

More certainty in health and education boosts economic growth. “In 2006, China became a big proponent of investing in the health and education sectors because they wanted to move from economic growth based on exports and infrastructure (roads and buildings) to domestic consumption,” says Dr Bekedam. “They wanted more people buying bicycles, cars and televisions and instead of saving money for health emergencies and education. Although I haven’t seen studies on saving rates in India, but I’m pretty sure Indians save a lot, and if health and education is taken care of, they will spend more,” says Dr Bekedam.

Insurance

He is unhappy that there was no real increase in health spending in the Budget. “There are many areas in public health that need Central support, such as health insurance. In China, they moved (health insurance) coverage from 20-25% of the population in 2002 to 90% in 2007!” he says.

Social health insurance has three dimensions, population coverage (number of people you want covered), the package being offer, and how much financial protection you want to give. “In China, partly for political reasons, they started increasing coverage quickly and kept the financial cover fairly low-30-40%. With the economic growth projected for India, you can play with these three factors –say, increase population coverage and then move to increasing the package and cover,” he says.

With the private sector providing 70-80% of services, there’s need to regulate and engage it to increase outreach. “India has to improve immunization and eliminate kala azar, leprosy and leishmaniasis, these are low-hanging fruits that need a final push,” says Dr Bekedam.

And the way to do it by building a stronger public health system. “You have it in some states, like Tamil Nadu, already. You need it in other states too,” he says. “Health needs to get the right attention and the government need to understand is how important is a healthy population for economic growth,” says Dr Bekedam.

Source: Hindustan Times

Read more ...

Increase taxes on tobacco products substantially to make them less affordable: Study

Prices of tobacco products in India have not increased substantially over a period, making them easily affordable, and even cheaper than essential food items, says a study.

The study 'Tobacco Taxes in India: An Empirical Analysis', commissioned by the ministry of health and World Health organization (WHO) India, was conducted by the Institute for Studies in Industrial Development and Public Health Foundation of India, that covers the period 2006 to 2013, and includes cigarette, bidi and smokeless tobacco (zarda /kimam/surti, paan masala and chewing tobacco) products, says a WHO statement.

The study corroborates the recent WHO Report on the Global Tobacco Epidemic 2015, which indicates cigarettes have become more affordable over 2008-14.

The study revealed that the current excise and value added tax (VAT) rates are insufficient to increase the prices of tobacco products, therefore making these products easily affordable. In recent times, the share of tax burden has also declined - for cigarettes it declined from 55.3% in 2008 to 36.8 % in 2013, while for bidis from 7.2% in 2011 to 5.3% in 2013.

The study recommends that tax on all type of tobacco products should be increased substantially, and tobacco tax regime should be broadened to include unorganized sector manufacturing under the tax net. It has also recommended that the tax exemptions on production of less than two million bidis should be eliminated and tax slabs on cigarettes based on length should be eliminated in a phased manner.

Highlighting that tobacco taxation as a fiscal policy is a win-win for both public health as well as revenue generation, Dr Henk Bekedam, WHO Representative India, said, "A comprehensive tax policy leads to reduction in tobacco use especially among young people and at the same time provides increased revenues to the government."

It has also been seen that affordability, in relation to income, of tobacco products is increasing at the national level, except for recent years. This is true even for the poorest households in the country.

According to Article 6 of the WHO Framework Convention on Tobacco Control (WHO FCTC) to which India is a signatory, prices of tobacco products must be increased periodically to make them inflation-adjusted, and there should be a uniform increase in tax rates across products.

The tax burden on tobacco products is also not in line with the WHO FCTC recommendations, which says, excise levies should account for at least 70% of retail prices of tobacco products.

"Tobacco taxation policy is the most cost effective strategy for tobacco control and has the ability to affect consumption, prevalence and affordability. Higher prices of tobacco products can promote cessation and prevent initiation among young people. This study reiterates the need for development of comprehensive tax policy for tobacco products to make them progressively less affordable over time by indexing tax increases on tobacco products to inflation. A simplified tax structure that uniformly taxes all tobacco products from the organized and unorganized sectors will have the greatest public health benefit for both consumers and the government," K Srinath Reddy, president Public Health Foundation of India, said.

Another health ministry report estimated that total economic cost attributable to tobacco use from all diseases in the year 2011 amounted to a staggering Rs 1,04,500 crore, equivalent to 1.04% of the country's gross domestic product.

Source: Times of India

Read more ...

Higher cigarette taxes bring down sales

Higher excise duty on cigarettes announced in the Union Budget last year and increases in value-added tax by Tamil Nadu, Kerala and Assam has resulted in a below-par performance in the quarter ending December 2014, tobacco giant ITC has said. 

"The cigarette segment revenue, as a consequence, remained flattish during the quarter," ITC said.

ITC reported a net profit growth of 10.4 per cent at Rs 2,635 crore in the December quarter against Rs 2,385 crore in the year-ago period, according to a story in the Business Standard on 22 January 2015. 

The below-par performance was a consequence of slow growth in the cigarette business. Revenue in ITC's cigarette segment grew 0.6 per cent year-on-year to Rs 4,142 crore. 

The Union Government in the 2014-15 Budget raised specific excise duty on cigarettes in the range of 11 to 72 per cent.

Kerala Government raised taxes of cigarettes by fifty per cent during the fiscal year 2014-15. From 20 per cent in 2013-14, cigarette taxes were raised to 22 per cent in the Kerala Budget 2014-15. In a mid-term post Budget revision, cigarette taxes were raised from 22 to 30 per cent in September 2014. 

Tobacco kills one million Indians every year and drains away Rs 104,500 crores as direct and indirect costs of treatment. 

The World Health Organisation has stated that increasing tobacco taxes is the most effective way to reduce consumption and save lives. It can also bring in much-needed resources to cash-starved economies. 

Read more ...