FM Nirmala Sitharaman lauded for levying duty on tobacco products

Hyderabad: Doctors, Economists and Public Health Advocates across India have welcomed the Union Finance Minister, Nirmala Sitharaman's announcement in the recent union budget 2023-24 to increase national calamity contingent duty (NCCD) on cigarettes to 16 percent and appealed to continue to increase tobacco taxation to make India a five Trillion Dollar Economy

According to the experts, the total tax burden is currently only about 53 per cent for cigarettes, 22 percent for beedis and 60 per cent for smokeless tobacco. Doctors, public health groups, youth and economists have been urging the Government to increase taxes on cigarettes, beedis, and smokeless tobacco as this is a winning proposition for generating revenue and reducing tobacco use and related diseases. Bhavna Mukhopadhyay, Chief Executive, Voluntary Health Association of India - "Increasing NCCD on tobacco products in the union budget is a welcome step by the Government, however, the percentage increase is minimal. We hope that in the future, the Finance Minister will ensure a significant increase in taxation and decrease in the affordability of all tobacco products to resonate the message that has been sent so strongly in this budget."

"Increasing NCCD on tobacco products in the union budget, although at a very nominal rate, is a welcome development. If India has to become a five trillion-dollar economy, then the Government should revise these duties periodically to keep the affordability of tobacco products under check", said a health practitioner.