Doctors hail council move to tax bidis at 28%

BENGALURU: The public health fraternity and city doctors have welcomed the GST Council’s decision to categorize all tobacco products, including bidis, as demerit goods and tax them at the highest tax rate of 28%. According to them, the move would not only discourage consumption of tobacco and save lives of 275 million tobacco users in the country, but also increase revenue collection for the government.

The Association of Private Hospitals of India (APHI) had been repeatedly appealing to the government to tax bidis at 28% under Goods and Service Tax (GST) to bring down bidi consumption in the country.

“Categorizing all tobacco products at the highest GST rate is one of the boldest and most impactful public health decisions that the government of India has taken to protect the health of its citizens from the growing menace of tobacco addiction. Taxing bidis at 28% will prevent death and disease not only among the millions of bidi users, but also among bidi workers, who are mostly women and children,” said Dr Ajai Kumar, chairman, HealthCare Global (HCG) Cancer Hospital and president of the APHI (Karnataka chapter).

Bidis are the most commonly used tobacco product in India, accounting for 64% of all tobacco consumption and is disproportionately consumed by the poor.

“We cannot go on subsidizing death for the poor and justify low taxes for bidis, one of the most preventable cause of death in India for rural poor. By keeping bidis in the demerit goods category of GST, the government has demonstrated tremendous commitment towards safeguarding the health of the poor in India and protecting this section from the growing menace of tobacco products,” said Dr U S Vishal Rao.

Rao is a head and neck oncologist and member of a high-power committee on tobacco control, government of Karnataka.