India: State Lags in Restrictions on Tobacco Use

Source from:  The Times of India  04/08/2013

Though Kerala touts itself as a state with high human development index, it lags behind other states in controlling tobacco consumption, despite it being a matter of grave health concern. It's been nearly a fortnight since Union health secretary KeshavDesiraju wrote to chief secretaries of over 12 states, including Kerala, to consider increasing VAT ( value added tax) on tobacco products at least by 50% to control tobacco consumption, yet it hardly had any impact in Kerala.
 
Citing Tobacco Control of India report that attributes around nine lakh deaths in the country to tobacco use, the letter exempts Rajasthan, as the state has already been levying a VAT of 50% on tobacco products and has increased it to 65% this year.
 
Jammu and Kashmir has raised VAT on tobacco products to 40% from 30% while Punjab had proposed to raise VAT on cigarettes from 20.5% to 50%.
 
Uttar Pradesh has proposed to raise the tax slab from 12.5% to 50% on tobacco products. Himachal Pradesh increased VAT on cigarettes and cigars from 18% to 36% and on beedis from 11% to 22%. West Bengal had raised taxes on cigarettes from 20% to 25% after the Central decision to increase excise duty on cigarettes by 18% this year. But Kerala has even failed to take a cue from neighbouring Tamil Nadu which is taxing beedis at 14.5% - based on the increasing evidence of tobacco-induced diseases like cancer and heart attack.
 
"A decision on increasing VAT on tobacco products should come through the empowered committee of the state finance minister, and it needs to be ascertained whether such a high tax rate (50%) is possible in the state or not," chief secretary K Jose Cyriac said.
 
Department of taxes secretary A Ajith Kumar said Kerala has increased VAT on cigarettes from 15% to 17.5% this year.
 
Discussions have to be held at a higher level to decide on increasing the tax slab further on tobacco products, he added.
 
Though Kerala proposes to increase VAT on tobacco by 20%, it is far below the WHO-recommended tax on tobacco products at 65-70% of retail prices. Enditem