Union Budget 2024: Doctors, health experts urge Centre to raise excise duty on tobacco
tobacco products in the Union Budget 2024–25 in order to raise additional funds. It is believed that raising the excise tax is one of the most cost-effective public policy tools available to regulate tobacco consumption. In addition, they also requested an increase in health taxes on cigarettes, bidis, and smokeless tobacco in their appeals to the Finance Ministry.
Health taxes, also known as sin taxes, are excise taxes imposed on products such as tobacco that have a clear negative public health impact. A recent study revealed that cigarettes, bidis, and smokeless tobacco have become increasingly affordable over the past 10 years, PTI reported. Dr.
Rijo John, health economist and adjunct professor at Rajagiri College of Social Sciences, Kochi said there has been a minor increase in National Calamity Contingent Duties (NCCD) on cigarettes, but apart from that, there has not been any major rise in tobacco taxes since the introduction of GST in July 2017. “Adding the current GST rate, compensation cess, NCCD, and Central Excise, the total tax burden (taxes as a percentage of final tax inclusive retail price) is only about 49.3 percent for cigarettes, 22 percent for bidis and 63 percent for smokeless tobacco," he said. Given that more than six years have passed since the implementation of the GST, and there has been no substantial tax hike on tobacco products during this period, Dr.
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