Harsh Vardhan calls for an increase in taxes on tobacco
New health minister was addressing an audience before releasing a report ahead of World No Tobacco Day on 31 May
New Delhi: Health minister Harsh Vardhan said he will strongly recommend increasing taxes on tobacco in India to the concerned ministries.
The minister was addressing an audience before releasing a report on the Economic Burden of Tobacco Related Diseases in India on Thursday ahead of World No Tobacco Day on 31 May.
The report, developed by the Public Health Foundation of India (PHFI) and supported by World Health Organization (WHO) and the ministry of health and family welfare, estimated direct and indirect costs from tobacco-related diseases that included tuberculosis, cardiovascular diseases and cancers. The total economic costs attributable to tobacco use from all diseases in India in 2011 amounted to ₹ 1.05 trillion, or 1.16% of the gross domestic product. The report pointed out that the total excise revenue from all tobacco products combined in the same year amounted to only 17% of the estimated economic costs of tobacco.
“The report provides scientific basis to the public health argument against tobacco, clearly highlighting the enormous economic burden that the country is bearing due to tobacco use while the revenue earned from tobacco is only a small fraction of the estimated cost of tobacco," said Monika Arora, director, Health Promotion, PHFI.
This year on World No Tobacco day, WHO is calling on all member states to raise taxes on tobacco, saying that higher taxes on tobacco products are proven to reduce tobacco users. Although most tobacco products are taxed in India, the taxes are low for smokeless tobacco products and bidis which are the most commonly used. “There is a need to develop a comprehensive tax policy for all tobacco products so that they are taxed at similar rates taking into account price elasticity and income elasticity of demand, along with inflation and changes in household income," said Nata Menabde, WHO representative to India.
Cardiovascular diseases shared the highest burden of ₹ 3,600 crore, of direct medical and indirect morbidity costs on account of tobacco use, followed by respiratory diseases, tuberculosis and cancers. The report called out for prioritization of tobacco control and increasing of resource allocations for non-communicable disease prevention and control, for larger population level benefits.
According to the report, the highest share of the estimated health cost burden related to tobacco use was in Uttar Pradesh at 28%, followed by West Bengal at 13%, and Andhra Pradesh at 12%.
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