Oncologists are unhappy with the reported government move to exclude beedis from the list of demerit goods under the goods and services tax (GST).
About a hundred doctors associated with the National Cancer Grid (NCG) have written to Prime Minister Narendra Modi to not provide any concession or a favourable tax rate to tobacco products. Demerit goods, which also include aerated drinks, luxury cars, and pan masala, will attract the highest tax rate of 28 per cent and also a cess. Doctors are up in arms after reports in the press that beedis might be exempt from this category.
R A Badwe, director, Tata Memorial Centre, said, “Tobacco taxation in India is much lower than the recommended level. The GST is a golden opportunity to correct this. In the interest of the citizens, especially future generations, we sincerely urge the government to put all tobacco products, including beedis in the category of demerit goods in the proposed GST structure.”
The campaign follows a similar one by the health ministry. Earlier this month the health ministry had raised concerns that despite regular tax increases on most tobacco products, both at central and state levels, their affordability had been increasing, even among the poorest of the poor. It had asked the finance ministry about the possibility of levying a sin tax on all demerit category goods and earmarking the funds for health sector investments.
Also, a recent public interest litigation has demanded that the Life Insurance Corporation of India (LIC) divest its stake in ITC, the largest cigarette maker in the country.
R Venkataramanan, managing trustee, Tata Trusts — and also a petitioner against the LIC in his individual capacity — is a signatory to this letter to the government. “The human and financial losses due to tobacco are staggering. The battle against cancer cannot be won unless we curtail tobacco addiction. We must stop this manmade disaster that is the number one preventable cause of non-communicable diseases,” he said.
High taxes on tobacco products and spreading awareness are the only ways of curbing its use, said experts.
Pramesh C S, a cancer surgeon at Tata Memorial Hospital and co-ordinator of NCG said, “India witnesses about 1 million deaths from tobacco-related diseases each year. Nearly 40 per cent of cancers in India are attributable to tobacco use. High taxation will certainly curb this.”
Bejon Misra, founder of Consumer Online Foundation, said the government should make an action plan to reduce consumption of tobacco. He said, “Merely imposing taxes will not bring down the consumption of tobacco. That will only lead to blackmarketting of tobacco products. Hence, the government should make a tobacco policy.”