Madhya Pradesh Voluntary Health Association (MPVHA), on the occasion of ‘World No Tobacco Day’, lauded the decision of the State Government that has increased the VAT on tobacco and its products.
MPVHA Executive Director Mukesh Kumar Sinha, in a statement on Thursday said that Madhya Pradesh Government has taken good decision to increase VAT on all tobacco products including cigarette, bidi and pan masala from 13 per cent to 27 per cent and this move will definitely decrease the tobacco consumption in the State and also save lives of people of Madhya Pradesh.
However tax rate is quite high in neighboring States like Rajasthan in which it is 65 per cent but certainly the step taken in Madhya Pradesh is a long leap in tobacco control efforts. He also said that enforcement of section 4,5, 6 and 7 of the Indian Tobacco Control Act is also required in order to strengthen the process of tobacco control in the State.
MPVHA Program Officer Bakul Sharma says increase in VAT on Tobacco products will certainly increase Government revenue which can be used for various tobacco control measures. He also said that research shows that higher taxes are especially effective in reducing tobacco use among lower-income groups and in preventing young people from starting to smoke.
Research shows that increase in tax, increases tobacco prices by 10 per cent, decreases tobacco consumption by about 4 per cent in high-income countries and by 8 per cent in most low- and middle-income countries.