Health experts warn against GST cut on beedis, demand uniform taxation
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New Delhi: Health experts have raised serious concerns over the government’s recent decision to reduce the Goods and Services Tax (GST) on beedis from 28 per cent to 18 per cent, while other tobacco products continue to attract the highest 40 per cent slab. Experts warn that making beedis cheaper could lead to increased consumption, particularly among poor and vulnerable communities, worsening India’s already heavy tobacco-related health burden.
Beedis, the most commonly smoked tobacco product in India, are used by over 70 million adults, according to the Global Adult Tobacco Survey (GATS) India 2016-17.
Renowned oncologist Dr Vishal Rao, recipient of the Judy Wilenfield Award for Global Tobacco Control by WHO Partners, cautioned, “Beedis, widely consumed by vulnerable populations, are very harmful. This tax disparity risks making beedis more affordable, potentially increasing their use, leading to cancers and other serious diseases.” He added, “The government’s decision to lower the GST on beedis while keeping other tobacco products at 40 per cent effectively subsidises death for the poor. Uniformly high taxation across all tobacco products is critical to deter consumption and protect public health.”
Highlighting the dangers of beedis, public health expert Dr Uma Kumar, Head of the Department of Rheumatology at AIIMS, Delhi, said, “Evidence clearly shows that higher taxation prevents tobacco use by reducing affordability. Beedis are no less harmful than cigarettes or smokeless tobacco. Consumption leads to life-threatening diseases such as cancers, respiratory illnesses, and heart conditions.”
Former Director General of Health Services Dr Jagdish Prasad criticised the move, stating, “No health or economic expert would support making a deadly product like beedi cheaper. Uneven tax policies that favour beedis over other tobacco products dangerously encourage their use and undermine decades of public health efforts. Bold, uniform, and high taxes on all tobacco products are essential to curb consumption and protect the most vulnerable from preventable health crises.”
Dr Pragya Shukla, Head of Clinical Oncology at Delhi State Cancer Institute, elaborated on beedi-related health risks: “Beedis, widely used across rural and low-income communities in India, deliver dangerously high levels of tar, nicotine, and carbon monoxide. They are a significant driver of serious health issues including oral, lung, bladder, and cervical cancers, chronic respiratory diseases, and cardiovascular conditions. Higher and uniform taxation is a proven strategy to reduce affordability, discourage uptake, and lower overall consumption, thereby protecting vulnerable populations and reducing the economic burden on our healthcare system.”
Taxation is recognised as a key tool for tobacco control by the World Health Organisation’s Framework Convention on Tobacco Control (WHO FCTC), to which India is an early signatory. Global studies indicate that a 10 per cent price increase can reduce tobacco consumption by 4-8 per cent in low- and middle-income countries, especially among youth and lower-income groups sensitive to price changes. The WHO further recommends that at least 75 per cent of the retail price of tobacco products be taxed to effectively reduce consumption.
Tobacco-related diseases impose a massive economic toll on India, estimated at over Rs 1.77 lakh crore annually, due to medical costs and productivity losses. Poor households bear the heaviest burden, and cheaper beedis could exacerbate this situation.
Health advocates are urging the government to reconsider the GST reduction, warning that affordable access to a deadly product will derail tobacco control efforts and disproportionately affect rural and low-income communities. They emphasise that uniform taxation aligned with global recommendations is essential to achieve sustainable development goals related to health, poverty reduction, and social equity.
With PTI inputs
