🚭 Why India Must Rethink Tobacco Taxation for Better Public Health

Tobacco-related deaths in India claim 3,500 lives every single day, imposing a staggering economic burden of nearly 1.4% of GDP. Despite GST aiming for “One Nation, One Tax,” tobacco products—especially bidis consumed by low-income groups—remain some of the most affordable in the world.

This affordability fuels addiction and undermines efforts to reduce consumption. The editorial insightfully argues that taxation isn’t just about revenue—it’s a powerful tool to shape healthier behaviors. By raising taxes on all forms of tobacco, including bidis (not just cigarettes), we can make harmful products less affordable, lower demand, and improve public health outcomes.

Yet challenges remain:

✅ Addiction limits how much higher prices alone reduce consumption.

✅ A narrow tax focus on cigarettes ignores 85% of tobacco users.

✅ The impending expiry of GST compensation cess risks making tobacco cheaper again.

✅ Concerns about illicit trade must be addressed through stronger enforcement, not by avoiding higher taxes.

It’s time India embraced a comprehensive taxation strategy: combining GST, excise, and continuous price hikes on all tobacco products—while reinvesting proceeds in healthcare and enforcement.

A healthier India demands bold action. Let’s not miss this opportunity.

#PublicHealth #TobaccoControl #TaxPolicy #HealthEconomics #BehavioralChange #India #GST #SinGoods #FiscalPolicy #SustainableDevelopment