India’s Group of Ministers within the Goods and Services Tax (GST) Council are being urged to increase the tax on tobacco products to help shore up the country’s disasters-remediation revenue, according to a story in the latest issue of the BBM Bommidala Group newsletter.
Public health groups, doctors and economists are said to be calling for the imposition of the additional tax on all tobacco products, including bidis, to address ‘the crisis and generate funds for the rehabilitation of the people of Kerala affected by recent floods’.
Currently, the tax on bidis is said to amount to 22 percent, while that on cigarettes is 53 percent and that on smokeless tobacco is 60 percent.
The World Health Organization recommends that tobacco-product excise taxes should be at least 75 percent.
Meanwhile, a panel of state finance ministers set up to consider a disaster tax within the GST to help states hit by natural calamities has decided to seek the response of all states on the matter.
It is probably as well that India is looking into raising funds for mitigating the effects of disasters natural or otherwise. The World Health Organization says that the country has nine of the world’s 10 most-polluted cities, as calculated on PM2.5 (fine particulate matter) levels in the air.
It's the smoker's burden
