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Experts Call For Higher 'Sin Tax' On Tobacco Ahead Of GST Council Meet
12/19/2024 9:59:48 PM
Agencies
NEW DELHI, Dec 19: Ahead of a crucial GST Council meeting on tax rationalisation health and economic experts have called for a higher 'Sin Tax' on tobacco and similar harmful products to curb their consumption and bolster public health and the economy.
At a webinar organised by 'Tobacco Free India', a citizens' initiative, experts endorsed the recent recommendation by the Group of Ministers (GoM) for a 35 per cent 'Sin Tax' slab on tobacco products, up from the current 28 per cent.
They argued that increasing taxes on tobacco would not only save lives but also strengthen the economy and advance the vision of a healthy and Viksit Bharat.
They emphasised that this step would curb tobacco consumption and fund preventive healthcare initiatives.
"Tobacco-related diseases place an unsustainable burden on India's health system. Tax hikes have proven globally effective in reducing tobacco consumption," said Dr Alok Thakar, Head of the National Cancer Institute, Govt. of India and Professor at AIIMS, New Delhi.
He also suggested that India must include all tobacco products under a stronger tax net to prevent users from shifting to cheaper, harmful alternatives.
The GST Council, chaired by Bihar Deputy Chief Minister Samrat Chaudhary, is scheduled to meet on December 21 to deliberate on the GoM's proposals.
These include introducing a new 35 per cent slab for Sin Goods like tobacco and aerated drinks while reducing GST rates on essential goods like notebooks, bottled water and bicycles as well as lowering premiums on health and life insurance.
Experts argue that the increased revenue from Sin Goods could help offset these rate cuts, offering relief to citizens while advancing public health goals.
Professor of Health Economics at the University of Lucknow Dr Arvind Mohan linked tobacco taxation with India's aspiration to become a developed nation.
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