Prakash Kamat
Panaji, May 31- On this World No Tobacco Day the public health groups along with doctors are urging the Goods and Services Tax(GST)Council to increase compensation cess on all tobacco products to generate additional revenue for the government.
In their appeals to GST Council they are urging it to consider an extra-ordinary measure of levying compensation cess on all tobacco products to get additional revenues. This tax revenue from tobacco could significantly contribute to the increased need for resources during the pandemic including vaccinations and augmenting the health infrastructure to prepare for a possible third wave.
According to the group, increasing tobacco taxes in these challenging times, will be WIN-WIN policy as it can address the economic shock from COVID-19 pandemic and directly reduce COVID 19 related co-morbidities.
World No Tobacco Day, observed on May 31 every year, gives tobacco users a fresh opportunity to determine and lead a healthier life. This year the theme of World No Tobacco day is: Commit to Quit’ Quit tobacco to be a winner.
World No Tobacco Day in 1987 was declared to draw global attention to the tobacco epidemic and the preventable death and disease it causes. Smokers have up to a 50% higher risk of developing severe disease and death from COVID-19 and so quitting is best thing smokers can do to lower their risk from this corona virus, as well as the risk of developing cancers, heart disease and respiratory illnesses
The 2nd wave of COVID-19 has been major shock to the country, and it far surpassed the first wave. The financial needs for the exchequer continue to grow on the face of the vast resources needed for the vaccination drive and for the preparation for a possible third wave of the pandemic.
The GST revenue receipts of both Central and State governments have been severely affected due to the COVID-19 pandemic and, as a result, the Central government has not been able to distribute the compensation cess dues to different state governments as guaranteed under the GST.
Increasing the existing compensation cess on cigarettes and smokeless tobacco products and levying compensation cess on bidis can be a very effective policy measure to address the immediate need to raise revenue by the Central government to compensate State governments for their respective GST revenue shortfalls during the pandemic time.
It will be a winning proposition for generating revenue and reducing tobacco use and related diseases as well as COVID related comorbidities.
There is growing evidence that smoking and smokeless tobacco increases risk for severe Covid 19 infection. Smoking worsens lung function and reduces immunity. Tobacco users who develop Covid infection have more complications and greater risk of fatality. It is urgent to increase taxes on all tobacco products to reduce their affordability and consumption and limit the increasing health and fatal damages and vulnerability to COVID 19 infection says,says Dr. Shekhar Salkar, Oncologist, Manipal Hospital, Goa and Secretary,National Organisation for Tobacco Eradication (India).
Tobacco use increases risk for severe COVID-19 infection, complications, and death. Available research suggests that smokers are at greater risk of developing severe disease and dying from COVID-19. Over 3 lakh people have died to date in India in the last 14 months because of COVID. Tobacco use which is a slow-moving pandemic itself claims the lives of 13 lakh Indians each year. It is critical than ever before to keep tobacco products out of the hands of vulnerable populations like youth and the underprivileged sections of society.
Mr.Ashim Sanyal, COO, Consumer VOICE, New Delhisays,“Unprecedented financial resources will be needed for the country to recover from the economic shock COVID-19 has created. Increasing compensation cess on all tobacco products will be a win-win proposition as it will bring in substantial revenue for the Government while motivating millions of tobacco users to quit and preventing youngsters from initiating tobacco use”.
India has the second largest number (268 million) of tobacco users in the world and of these 13 lakhs die every year from tobacco related diseases. Nearly 27% of all cancers in India are due to tobacco. Tobacco use in all forms (smoking/ chewing) is associated with severe COVID-19 casualties as per Ministry of Health and Family Welfare and Indian Council of Medical Research. The annual economic costs from all diseases and deaths attributable to tobacco use is estimated to be Rupees 177,341 crores in 2017-18 amounting to 1% of India’s GDP. This will continue to grow post COVID.(eom)
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