Health Experts Sound the Alarm: Call for Uniform Taxation After GST Cut on Beedis

Health experts are sounding the alarm about the government’s recent decision to cut the Goods and Services Tax (GST) on beedis from 28% to 18%. This move raises serious concerns, especially since other tobacco products still face a higher tax of 40%.

Beedis are widely used in India, with over 70 million adults relying on them, according to the Global Adult Tobacco Survey (GATS) 2016-17. Experts worry that making beedis cheaper will lead to increased usage, particularly among impoverished and vulnerable communities.

Renowned oncologist Dr. Vishal Rao, known for his work in global tobacco control, highlighted the dangers of this tax cut. He stated, “This could make beedis more affordable, resulting in higher use and more tobacco-related diseases.” He warned that this tax decision effectively “subsidizes death” for poorer populations.

Dr. Uma Kumar, a public health expert at AIIMS, emphasized that increasing taxes on tobacco reduces its affordability and consumption. She pointed out that beedis are just as harmful as cigarettes, causing severe health issues like cancer and respiratory diseases.

Former health services director Jagdish Prasad echoed these concerns, stating that experts would not endorse making beedis cheaper. He stressed that high, uniform taxes on all tobacco products are essential for public health.

Pragya Shukla, head of Clinical Oncology at the Delhi State Cancer Institute, added that beedis deliver harmful levels of tar and nicotine, significantly contributing to health issues like various cancers and respiratory problems. She noted that higher taxes on tobacco have been shown to reduce its use, especially among vulnerable groups.

Taxation is a powerful tool for controlling tobacco use. The World Health Organization (WHO) suggests that a 10% increase in price can lower tobacco consumption by 4-8% in low- and middle-income countries. Furthermore, the WHO advises that at least 75% of the retail price of tobacco should be taxed to effectively reduce consumption and protect public health.

In India, the economic toll of tobacco-related diseases is staggering, estimated at over ₹1.77 lakh crore each year. Poor households bear the brunt of these costs, making it crucial to reconsider any tax changes that could worsen this burden.

Health advocates are urging the government to rethink the GST reduction on beedis. They warn that making these lethal products more accessible can derail efforts to control tobacco use, which disproportionately affects rural and low-income communities. Ensuring uniform taxation aligns with global health recommendations, combating poverty and promoting social equity.

By taking a strong stance on tobacco taxation, India can protect vulnerable populations and work towards a healthier future.

For more on the economic impacts of tobacco, you can refer to the World Health Organization’s Framework Convention on Tobacco Control.

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GST cut on beedis,uniform taxation on tobacco products,Tobacco Control