Monday, October 11, 2010

Taxes on tobacco in India in the Asia and Pacific

Sydney: taxes, while India is the product of smell is one of the lowest in the Asia-Pacific region, and differ with the policy of the World Health Organization.

The results come to the fore, through comparative study of Southeast Asia Maria Assunta sniff Control Alliance (SEATCA) done. While the recommendations of WHO said that 65% should be taxed up to 80% of sales of tobacco products, tax rates for cigarettes and bidis are now 9% and 38% respectively.
Bidi taxed under significant compared to cigarette filters. Tax on bidis in 2007-08 is Rs 14 per 1,000 sticks (for handmade bidis) and Rs 26 per 1,000 for the machine-made bidis. A recent report assumes that consumes between 52% and 70% of the bidis in India are not taxable.

Assunta study found that compared to India, the tax rate is 68% Australia, Bangladesh (67%), Japan (63%), Malaysia (54%), Sri Lanka (77%) and Thailand (70%). Several other countries have to raise taxes on tobacco, including China (39%), Indonesia (37%), Philippines (30%) and Vietnam (45%).

Assumption Toi said, "Research has shown that the benefits of its products by the smell from 10% in low-income countries and middle to reduce consumption by 8%."

Harley Stanton, president of the Asia-Pacific Conference on sniff or Health (APACTA) held here on Thursday, said. "Taxes are the most important thing to do to reduce consumption of smell What the government to understand that the cost of failure to treat people, loss of productivity and effects on children with smoking, an increase of almost four times higher than that set by the Government of the product sensation. "

While the payments to what cigarette manufacturers of household income, government and individuals into large health burden caused by tobacco. Therefore, it is important that tax increases on tobacco products in accordance with WHO requirements. This is a win-win for the government not only to collect more money from tobacco companies, but also reduce the burden on health such as smoking, "he said.

Smoking kills one million people in India. But latest reports say, the increase in excise duty on bidis and cigarettes could save the lives of nearly two million rupees.


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