Tobacco tax less in India

Tax charged by India on tobacco products was among the lowest in the Asia Pacific region, and at variance with the World Health Organization?s norms.

The findings were revealed in a study by Mary Assunta of South East Asia Tobacco Control Alliance (SEATCA), a published report said on Monday.

While WHO?s recommendation was that 65 to 80 percent of the retail price of a tobacco product has to be taxed, the current tax levels for bidis and cigarettes are 9 and 38 per cent respectively in India.

The tax on bidis in 2007-08 was Rs 14 per 1,000 sticks (for handmade bidis) and Rs 26 per 1,000 for machine-made bidis with an estimated 52 and 70 per cent of all bidis consumed in India not being taxed.

Assunta?s study revealed that in comparison to India, tax rate in Australia is 68 per cent, Bangladesh (67), Japan (63), Malaysia (54), Sri Lanka (77) and Thailand (70).

Some other countries, which are yet to increase taxes on tobacco products include China (39), Indonesia (37), Philippines (30) and Vietnam (45).

Tobacco smoking kills one million Indians a year.