• Regulations
on manufacturing, distribution and sale of non-virginia tobacco can enhance
Government revenues in the range of Rs 35,000 Cr – Rs 40,000 Cr protecting
health of youth
Shram,
a self-help group working in collaboration with doctors and professionals
working in the field of health and education to build awareness against tobacco
and alcohol abuse, appeals to Dr. Harsh Vardhan, Minister of Health &
Family Welfare and Smt. Nirmala Sitharaman, Minister of Finance to regulate the
unorganized manufacturing, distribution and sale of smokeless and other
non-virginia tobacco in India to curtail its widespread consumption, protecting
health of citizens and bring it under a taxation structure.
Smokeless
tobacco in India is currently used majorly for unorganized manufacturing of
chewing tobacco, gutka, pan masala variants, zarda and others. These products
are widely available and consumed by the poorer section in India due to their
affordability and accessibility in the absence of any regulations and taxation.
According to a study published in BMC Medicine, India accounts for 70% of
deaths globally caused due to chewing of smokeless tobacco. The need for
regulations to curtail their use is even greater during COVID-19 as this
variant of tobacco is mostly chewed and spat thereby aiding the spread of the
virus. The requirement for regulations is driven further by the fact that
India, as per the research, is a hotspot for smokeless tobacco consumption.
While
India has an expansive set of rules and laws to restrict and regulate tobacco
used in cigarettes and cigars at par with international norms, smokeless
tobacco products and variants do not fall under this umbrella despite being 85%
of the tobacco grown in India across 15 states. This largely unorganized and
unregulated sector sees consumers of all age groups with the average age of
tobacco consumers being as early as 17.4 years, according to Global Adult
Tobacco Survey. The survey also found that close to 30% of tobacco users across
India used smokeless tobacco yet this remains a sector away from the purvey of
any rules and regulations.
The debilitating state of the smokeless tobacco sector demands a regulatory
structure akin to that in place for other tobacco products. If smokeless
tobacco is traded or processed through auction platforms governed by the
Tobacco Board of India or via APMCs then it will ensure fair pricing and ample
taxation. Regulations will also ensure that manufacturers do not evade taxes in
this highly unorganized sector.
Placing
an appeal for introducing a regulatory framework for trading of smokeless
tobacco, Dr. Pranasmita Kalita of Shram said, “Smokeless
tobacco industry in India is majorly an unorganized sector that sees producers,
manufacturers and distributors take advantage of it being outside the ambit of
any regulatory or taxation structure. This has led to wide exploitation of
labour and massive tax evasion. The need of the hour lies in putting in place
the government taking into account this crisis and introduce policies and laws
to regulate and ensure legally taxed trading of smokeless tobacco and its
products. Suitable taxation on non-virginia tobacco can bring in revenue to the
Government in the range of Rs 35,000 crores to Rs 40,000 crores approximately.”
Steps
to tackle the sale, manufacturing and production of smokeless tobacco is of
utmost importance now, during COVID-19 as products derived from this category
of tobacco are chewed and spat instead of being swallowed or breathed in. A
definitive regulatory policy and subsequent taxing can play a hand in
curtailing its widespread consumption.
New Delhi, 24 August 2020
.JPG)
