2 ms·
https://cleartax.in/s/impact-of-gst-rate-on-the-tobacco-industry/ https://cleartax.in/s/impact-of-gst-rate-on-the-tobacco-indu... "Impact on the tobacco indust
by 2Gkashmiri 5y ago
https://cleartax.in/s/impact-of-gst-rate-on-the-tobacco-industry/ https://cleartax.in/s/impact-of-gst-rate-on-the-tobacco-indu...
"Impact on the tobacco industry is going to be largely neutral since the 5% cess declared by the Indian government was less than the expected rate by the tobacco industry. There will be an increase in the expense of smokers due to the rise in the price of a cigarette in the initial period. Although, it is expected that the tobacco industry, irrespective of the tax rate, would have a neutral effect due to the implementation of GST."
https://www.thehindu.com/opinion/op-ed/low-tobacco-tax-poor-health/article37904046.ece https://www.thehindu.com/opinion/op-ed/low-tobacco-tax-poor-...
"The lack of tax increases in post-GST years might mean that some current smokers smoke more now and some non-smokers have started smoking. This could potentially lead to a reversal of the declining trend in prevalence. This might jeopardise India’s commitment to achieving 30% tobacco use prevalence reduction by 2025 as envisaged in the National Health Policy of 2017 by the Government of India."
https://www.caclubindia.com/articles/taxation-and-impact-of-gst-on-cigarette-industry-31931.asp https://www.caclubindia.com/articles/taxation-and-impact-of-...
this one has more meat into it.
- viraptor 5y agoI don't think any of those really mention the number of smokers. They discuss the impact on the tobacco industry, which can make up the income in price difference on top of the lower-than-expected tax. The second article says only that not raising the tax higher means some people decided they're ok with the cost. But neither one really shows that the prevalence of smokers pre- and post-tax hasn't changed. In terms of numbers I can only find the 2016-2017 GATS numbers of 28.6% users, 10.7% smokers.