Finance Minister Arun Jaitley’s proposal to increase the price of cigarette and tobacco products has received a mixed response from the public. While many welcomed the move praising its potential health benefits, others termed it as a futile attempt to compel people to quit smoking. Each year one million Indians reportedly die due to smoking.
“It’s certainly a welcome step. But I am not sure whether charging more will stop people from smoking. It will only serve one purpose of giving more revenue to the government,” said Rahul Kamble, a sales executive from Mumbai.
The Union budget presented has proposed an increase in the specific excise duty on cigarettes in the range of 11 percent to 72 percent. Similar increases are proposed on cigars, cheroots and cigarillos. Likewise, the excise duty is being increased from 12 per cent to 16 per cent on pan masala, from 50 per cent to 55 percent on un-manufactured tobacco and from 60 per cent to 70 per cent on gutkha and chewing tobacco.
Amit Sharma, a Mumbai-based hospitality professional, said the move was positive as it would “boost his attempts to quit” smoking. “I appreciate the step. With higher prices, we can control our habit,” he said.
However, >a recent article in The Hindu argues that while increase in tax may reduce smoking among citizens in developed nations, it does not make a drastic difference in countries like India.
In the case of cigarettes, unlike the system followed abroad, the taxation in India is based on the length of the cigarette. Cigarettes of various lengths are taxed at different specific rates. As a result, longer cigarettes attract the most tax. This taxation structure encourages a company to manufacture cigarettes of varying lengths, the article said.
Social media was also abuzz following the government’s proposal with mix reactions from Twitteratis. While a number of users welcomed the government decision, many ridiculed it.
A user with Twitter handle @Bawli_Booch tweeted, “Massive hike in Excise Duty on Cigarettes. The unintended consequence will be a more lucrative grey market for cigarettes now.” Another user @bwoyblunder said, “No taxes on Cigarettes = Everybody would smoke = More Deaths = Lower Population = Lower Govt Spending = Lower Taxes = Cheaper Cigs =...”
In reply to The Hindu’s call on Twitter for reactions over the issue, Sanket B Mehta, a computer science student, welcomed the move. Another reader Subroto called it “A non smokers curse to smokers.”
“I don’t think it will matter much. Those who are addicted will surely spend money to buy it. And if they can’t afford it, they will find a substitute for it,” said Kedar Navare, a businessman from Mumbai. Mr. Navare accepted that he is addicted to chewing Tobacco, but it is difficult to let it go.
