Smoking away to glory

NEW DELHI: In the backdrop of World No Tobacco Day observed this week, the Union Health Ministry issued a notification mandating over-the-top (OTT) streaming platforms to display anti-tobacco warnings as seen in films screened in theatres, and on TV. The amendments made to the rules under the Cigarettes and Other Tobacco Products Act (COTPA), 2004, said publishers of online curated content displaying tobacco products, or their use will be required to display prohibitive health spots, lasting a minimum of 30 seconds each at the beginning and middle of the programme.

This new notification, which will be affected within three months, makes India the first nation to regulate anti-tobacco warnings on OTT platforms. It seems timely as the burden placed by tobacco on our healthcare ecosystem cannot be overstated. Tobacco is a major risk factor for chronic diseases, including cancer, lung disease, cardiovascular disease and stroke. Its consumption accounts for nearly 1.35 mn deaths annually. India also happens to be the second largest consumer as well as producer of tobacco globally. Per the Global Adult Tobacco Survey India, 2016-17, as many as 267 mn adults (over the age of 15 years), which makes up 29% of all adults, are users of tobacco.

The most prevalent form of use includes smokeless tobacco and products like khaini, gutkha, betel quid with tobacco and zarda. Smoking tobacco includes bidi, cigarette and hookah. But both variants exact a heavy social and economic toll as well. The total economic costs attributed to tobacco use from all diseases recorded in India in 2017-18 for people aged over 35 amounted to Rs 1,77,341 crore. But these numbers have fallen on deaf ears as a variety of tobacco products are available at rock bottom prices here.

During this year’s Budget, a 16% hike in customs duty on cigarettes was announced. The government currently levies GST of 28% on cigarette and tobacco products, which is the highest tax slab. The additional tax is known as sin tax and it takes the total tax incidence on cigarettes to about 50-60%, which is lower than 75%, the rate recommended by WHO. Sin taxes are imposed on goods or services that could be detrimental to society – including tobacco, gambling ventures, and sugar products.

One could have argued in favour of raising taxes and making tobacco products like cigarettes unaffordable. But herein lies the caveat. Cigarette smokers comprise just about 15% of tobacco users in India, but they end up generating about 80% or more in taxes. The remaining users of smokeless and chewing tobacco remain untouched by this cess, not to forget bidi users, who have also been excluded from this duty. Also, any hike in cigarette prices over 1% only translates to more profits for the makers.

It might be hard for India to follow the Swedish model of deterrence, which has now led to the Scandinavian nation racing to become the first smoke-free country in Europe, i.e. having less than 5% of daily smokers in its population. The reason is that India has a massive workforce dependent on tobacco for its livelihood. Before eliminating tobacco, the government needs to consider a feasible programme to help these workers transition to an alternative industry, even as it stares at a massive dip in tax revenues, to which the tobacco industry is an important contributor.