Home / Health / India's Tobacco Tax: WHO Target Missed
India's Tobacco Tax: WHO Target Missed
10 Feb
Summary
- India is the world's second-largest tobacco producer and consumer.
- Cigarette taxes fall short of WHO's 75% benchmark.
- Beedi tax reduction may worsen health inequities in India.
India, a major global producer and consumer of tobacco, is falling short of international benchmarks for tobacco taxation. While excise duties and GST rates on cigarettes and smokeless tobacco have seen upward revisions, they still do not meet the World Health Organization's (WHO) recommendation that taxes constitute 75% of the retail price to significantly deter consumption. Current taxes on cigarettes represent only 53% of the retail price, potentially making them too affordable, particularly for young and low-income individuals.
Adding to concerns, the Goods and Services Tax (GST) rate on beedis has been reduced to 18%. Beedis are more widely consumed than cigarettes, especially by lower-income populations, and this tax reduction is viewed as a significant public health setback that could worsen existing inequities in tobacco use and its associated health burdens. Experts suggest the GST rate on beedis should be aligned with that of cigarettes at 40%.
Meanwhile, the tobacco industry's tactics, including lobbying and attempts to influence policy, remain a significant concern. The WHO Framework Convention on Tobacco Control (FCTC) has warned that the industry is intensifying efforts to weaken global tobacco control measures. While India has made marginal improvements in the Tobacco Industry Interference Index, industry influence on policy decisions continues to be a challenge for effective tobacco control.
