Health experts insist that stiff taxes is the only way to cut its consumption among the poor
Considering the direct link between tax on bidis and its consumption, health activists are looking forward to the GST council meet scheduled here on Saturday, where taxation on bidis will be decided. Union Finance Minister Arun Jaitley, States’ revenue and finance ministers, and taxation officials are expected to be part of the meeting.
Activists and doctors are concerned that a tax below 28 per cent under Goods and Services Tax will cause a sharp increase in bidi consumption, and further aggravate public health and economic burden caused by its use in India.
“The most direct and effective method for reducing bidi consumption is to increase its price through increased taxes. As per our projections, an 18 per cent GST rate will lead to an upswing in consumption by 1.25 per cent, which is massive in volume terms. However, a 28 per cent slab will result in 0.77 per cent dip in use, which is also a substantial swing,” said Dr Rijo John, Economist and Health Policy Analyst.
“Interestingly, if excise burden is applied over the GST, consumption can further dip by over one per cent. This would imply a huge behavioural change, given the bidi market in India runs into billions,” he said.
As per a 2008 report by the Ministry of Health and Family Welfare on bidi smoking and public health, bidi smoking poses a very high risk of cancer, and a greater risk of oral cancer, stomach cancer and lung cancer than non-smokers.
“Bidis are the most common tobacco stick in India. It’s consumed mostly by the poor, and makes them susceptible to cancers, and pulmonary and cardiovascular diseases. Studies have shown that bidis are deadly and should be made unaffordable to the poor,” Dr US Vishal Rao, Head and Neck Oncologist, Bengaluru.
FIGURES SPEAK
- Two-thirds of India’s tobacco users consume bidis
- One million deaths in India every year are tobacco-related
Source: Union health ministry
LABOUR APPEAL
- Bidi workers from Tamil Nadu and Uttar Pradesh have recently written to the Union Finance Minister Arun Jaitley about their high risk of life-threatening diseases such as tuberculosis and lung cancer due to prolonged exposure to tobacco. The workers have pressed the government to intervene and alleviate working conditions, and eventually help them seek alternative livelihoods.
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