New Delhi, Nov 15:
A 50 per cent rise in cigarette prices (corresponding to a tax increase
of 70-122 per cent) would avoid over four million tobacco-related deaths
in India.
This has been highlighted in a new Asian Development Bank (ADB) report
titled ‘Tobacco taxes: A win-win measure for fiscal space and health’.
This report aims to assess how changes in cigarette taxes can reduce
consumption and save lives in the high-burden countries in Asia.
Two-thirds of the world’s tobacco users live in just 15 countries, and
five of these high-burden countries (People’s Republic of China, India,
Philippines, Thailand, and Vietnam) are in Asia.
In the five countries, a 50 per cent price increase, corresponding to a
tax increase of about 70–122 per cent, would reduce the number of
current and future smokers by nearly 67 million and reduce tobacco
deaths by over 27 million.
It would generate over $24 billion in additional revenue annually (a
143-178 per cent increase over each country’s current cigarette tax
revenue).
The revenue increase or “fiscal space’’ averages 0.3 per cent of gross domestic product with a wide range of 0.07–2.52 per cent.
The ADB report has also highlighted that Indian male smokers can expect
to lose a full decade of life and most lives lost are at the most
productive age of 30-69 years, rather than an advanced age. Around 10
per cent of Indian men smoke, according to the ADB report.
Switching to cigarettes from bidis is occurring. But a switchback is
likely if only cigarette prices rise. So parallel tax increases on bidis
as well as better oversight of the industry would be ideal, the report
said.
Additional taxes would help close the fiscal deficit. In India, poor
people would account for 30 per cent of the additional taxes paid but 47
per cent of deaths averted.
In the absence of intervention, smoking will eventually kill about 267
million current and future cigarette smokers who are alive today in the
five countries.
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