Tax that is collected by India on tobacco products is one of the most lowest in the whole Asia Pacific region, and at non-conformity with the World Health Organization’s norms.

The findings were revealed due to a comparative study led by Mary Assunta of South East Asia Tobacco Control Alliance (SEATCA).

WHO adopted an ordinance which states that 65% to 80% of the retail price of a tobacco product has to be levied, the current tax levels for bidi and cigarettes are 9% and 38%, respectively.

Bidis are significantly under levied as compared to filter cigarettes. Levies on bidis in 2007-08 constituted 14 rupees for 1,000 sticks (handmade bidis), and 26 rupees for 1,000 machine-made bidis.

A recently conducted report showed that between 52% and 70% of all bidis used in India didn’t pay any levy.

Assunta’s study shows that compared to India, tax rate in Australia constitute 68%, Bangladesh (67%), Japan (63%), Malaysia (54%), Sri Lanka (77%) and Thailand (70%).

Also there are some countries that plan to raise levies on tobacco products, these are (39%), Indonesia (37%), Phillipines (30%) and Vietnam (45%).

"According to our data the increase of prices on tobacco products by 10% will lead to decrease in consumption by 8%," Assunta stated.

"Taxation is probably the most important thing that countries can undertake in order to decrease tobacco use. Most governments do not want to understand that the cost of caring people, lost productivity and influence on children through exposure to second hand smoke is almost four times higher than the levy exacted by the government from tobacco products," Harley Stanton, president of Asia Pacific Conference on Tobacco or Health (APACT), stated at the conference.

"While the tobacco manufacturers gain a good profit from this situation, government and individuals should pay for the immense health burned that smoking causes. So, it is evident that levies on tobacco products are raised due to WHO’s demands. It is a mutually advantageous situation for a government that not only gains more money from tobacco manufacturers but the health care burden also declines as smoking comes down," he noted.

Smoking kills one million Indians per year. But according to a recently conducted report an increase in excise duty of bidis and tobacco products could save two million of lives.

Without a strong and immediate action, more than 51 million Indians will face premature death due to smoking. Tobacco related illnesses and death cost Indian government about 30,000 rupees. Smokers of bidi and regular cigarettes die 6 to 10 years earlier than their non-smoking counterparts.

More than 120 million Indians smoke, and about 10% of world’s smokers line in India.

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