Union Budget: Increase in NCCD on tobacco products lauded

 STAFF REPORTER

GUWAHATI: Advocate Ajoy Hazarika, Secretary, Consumers' Legal Protection Forum, Assam said, "Increasing National Calamity Contingent Duty (NCCD) on cigarettes in the Union Budget is a welcome step by the government, however, the percentage increase is minimal. We hope that in future the Finance Minister will ensure a significant increase in taxation and decrease in the affordability of all tobacco products to match the message that has been sent so strongly in this budget."

Doctors, economists and consumer groups, public health advocates across India have welcomed the Union Finance Minister's announcement to increase national calamity contingent duty (NCCD) on cigarettes to 16 per cent in the annual budget of 2023-24. Dr AC Kataki, former Director, Dr. B. Borooah Cancer Institute, Guwahati said, "Bidis and smokeless tobacco are the most used tobacco products in India and are consumed disproportionately by the poor. In fact, they are the largest consumed tobacco product in the country. Lacks of tax increase for past several years have made these products more affordable. It is critical to make tobacco products expensive and beyond the reach of vulnerable populations like youth and the underprivileged sections of society." Doctors, public health groups, youth and economist have been urging the government to increase taxes on cigarettes but on bidis and smokeless tobacco as this is a winning proposition for generating revenue and reducing tobacco use and related diseases. Nirmala Sitharaman proposed to revise NCCD on specified cigarettes upwards by about 16 per cent while presenting the Union Budget 2023-24 in the Parliament. The NCCD on specified cigarettes was last revised three years ago.

Dr Mousumi Borah, Associate Professor, Department of Economics, Arya Vidyapeeth College said, "Increasing NCCD on tobacco products in the union budget is a welcome development. If India has to become a five trillion dollar economy, then the government should revise these duties periodically to keep the affordability of tobacco products under check."

The Parliament Standing Committee on health submitted a pertinent and comprehensive report on Cancer Care Plan and Management in which it undertook a detailed study of the causes of Cancer in India and noted with concern that in India, "the highest number of lives lost is due to oral cancer caused by tobacco, followed by cancer of the lungs, oesophagus and stomach." In view of these alarming observations, the Committee has noted that India has one of the lowest prices for tobacco products and there is a need to increase taxes on tobacco products. The Committee accordingly recommended that the Government to raise taxes on tobacco and utilize the additional revenue gained for cancer prevention and awareness.

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