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VHAI demands tax hike on tobacco products
5/27/2016 11:34:31 PM
Srinagar, May 27: Demanding an immediate increase in tax on tobacco and other tobacco products, Voluntary Health Association of India, (VHAI) Friday said that the an increase in taxes will reduce overall tobacco consumption in the state and raise revenues for the State government.
"An increase of 10% in tax makes about 3% of cigarette smokers and 9% of bidi smokers quit smoking. It also has a 'reining in' effect by curtailing new entrants into the vicious circle of tobacco consumption and thus helps save lives," a statement issued by the organization said.
"If the number of tobacco-users is reduced, there will be less expenditure by the government on tobacco related diseases. One rupee spent on tobacco products means Rs. 16 spent on diseases that crop up from using this dreaded menace," the statement added.
"Taxes on tobacco products in India fall well below the rate recommended by the World Health Organization, (WHO). Tobacco taxes in India are not regularly adjusted for inflation, and over time tobacco products are becoming increasingly affordable, leading to 1 million deaths annually in India due to tobacco related diseases. Increasing tax means a win-win situation for the state-It increases revenues, reduces consumption and save lives and also reduces state's burden of treatment costs," the statement said.
"The state Government has shown great leadership in the last two years by raising the tax on tobacco products from 13.5% to 40%. This has had a direct impact on the consumption level of tobacco use, especially among the youth. This also makes J&K as the best practice state on tax increase on Tobacco products," it added.
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