Dr Sidhu urges CM to increase VAT to curb tobacco consumption

Sunday, 01/06/2014

http://epaper.dailypostindia.com/Details.aspx?id=105846&boxid=58885&uid=&dat=2014-06-01

Amritsar :On the eve of ‘World No Tobacco Day’, Dr Navjot Kaur Sidhu, Chief Parliamentary Secretary Health and Family Welfare, Punjab has written a letter to Parkash Singh Badal to increase VAT on tobacco products. She informed CM that everywhere ‘World No Tobacco Day’ was observed with serious deliberations on curbing its use. The only factor that would help in lessening the use of Tobacco usgae is to increase VAT on it. Even WHO recommends the VAT increase of approx 60 per cent. She added that it is a misconception that increasing VAT will lead to loss of revenue. According to many reports, it shows that in 18 states, revenue in fact has increased with the hike in taxes.

Dr Sidhu expressed, “We, as public representatives should stand against the industrialists as we all know the massive health hazard of Tobacco products. It is actually a failure of enforcement rather than illicit trade. All the developed countries have taken this issue very seriously and curbed this issue in an effective manner by increasing taxes, increasing the age of consumption to 21, and by implementing strict laws.”

“The report, ‘Economic burden of Tobacco related diseases in India’ was developed by the Public Health Foundation of India. It estimates the direct and indirect costs from all diseases caused due to tobacco use and four specific diseases - respiratory disease, tuberculosis, cardiovascular diseases and cancer are caused by the use of Tobacco. The total economic costs from Tobacco-related diseases in India in 2011 stood at Rs 1,04, 500 crore - 1.16 per cent of GDP and 12 per cent more than the combined state and Central government expenditure on healthcare in 2011.”

“According to the report, direct medical costs of Tobacco-related diseases amount to Rs 16, 800 crore and associated indirect morbidity costs amount to Rs 73, 000 crore, indicating a substantial productive loss to the nation, the report states,” added Dr Sidhu. She conveyed that seeing our present inefficient system of enforcement, it is our moral duty to immediately consider increasing VAT, so that we can save our fellowmen from dying of cancer and youth from drugs.

Increasing VAT had seen massive decline in consumption of cigarette and bidis which are used in huge amounts by labourers and idle youth leading to environmental pollution, passive consumption by non users and massive health hazard,” Dr Sidhu said. “In view of the above facts you are requested to issue directions to increase VAT on tobacco products. I shall soon be taking up this issue with Health Minister Dr Harshvardhan also.”