Study: Tax Burden on Cigarettes in India is Quite Low

The current tax burden on cigarettes in India is quite low according to the international scale. A new study released on Wednesday ranked Australia and New Zealand at the top in terms of making cigarettes sufficiently expensive.

This is slightly better than the average score (1.82) for countries in South-East Asia, but lower than the global average of 2.07. The country with the top position in terms of cigarette tax is 4.63. After assessing the performance of cigarette tax policies in more than 170 countries, including India, Tobaconomics has said that similar product taxes are placed on cigarettes in Australia and New Zealand.lty

With the regular increase in them, buying cigarettes in these countries is quite expensive. Tobaccoonics is based at the University of Illinois at Chicago’s Institute for Health Research and Policy, which conducts economic research to inform and formulate fiscal policies for health globally. It added that the scorecard assessed the cigarette tax policies of various countries based on international best practices using data from the World Health Organization for the years 2014-2018.

Nearly half of the countries scored less than two out of maximum five marks. Regarding India, it said that the country scored 1.38 in 2014 due to cigarette taxation policy, which reached 2.38 in 2016. Due to non-increase of taxes and cheaper cigarettes, it came down to 1.88 in the year 2018.

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