'High tax results in 5.6% drop in tobacco use in Rajasthan'

KOTA: The prevalence of smoking in Rajasthan has decreased by 5.6 percentage points in Global Adult Tobacco Survey (GATS-2), 2016-17, compared to GATS-1, as per the recently released GATS-2. Experts give the credit to high tax on tobacco products in Rajasthan.
State government had imposed up to 65% tax on cigarettes and bidis, discouraging many smokers. In 2010, VAT on tobacco products was 12.5% .It was increased to 65% in 2013-14. Imposition of high tax has been very encouraging, which reflected in GATS-2 results.
As per the survey, there has been decline in bidi smokers from 16% to 11.4% and in absolute numbers bidi users have come down to 58 lakh from 74 lakh. Still, their number is high compared to 14.3 lakh cigarette smokers in the state. Experts suggest that government should focus on increasing tax on bidi so that its consumption declines. Arvind Mathur, head, Taxation Group, Sambandh Health Foundation, said, "GATS-2 findings reiterate that taxation remains a key policy initiative for better health consequences. Even in the GST regime, Rajasthan government must focus on increasing taxation on bidi."
Although, 28% GST has been imposed on cigarettes and bidi, still there is scope of increasing cess on bidi, like cigarettes.