With consumption of tobacco products claiming the lives of over 13 lakh people in the country every year, economists and health experts suggested a steep increase in the tax rates on tobacco products to disincentivise consumers from purchasing them.
Currently, the Centre imposes 53% tax on cigarettes, 16% on beedi, and 64% on smokeless-tobacco products. Taxes on tobacco products have largely remained unchanged in the post-GST regime. “With Indian people largely price sensitive,” they suggested hike in taxes.
