New Delhi, April 13: Its very own survey may have revealed that smoking has increased among youth due to easy availability and low prices of cigarettes, but this has not made ASSOCHAM, the premier business chamber, sensitive enough to seek a higher tax on the tobacco item to protect the younger generation from its health hazards like cancer.
Instead, ASSOCHAM has recently written to all the State Governments to ensure a uniform VAT of as low as 12.5 per cent on the tobacco item arguing that divergence in the rates would spurt illegal activities, tax evasion and smuggling of the product.
The post-Budget move came when most of the States like Delhi, Bihar, Goa, Himachal Pradesh, Jammu and Kashmir, Karnataka and Rajasthan increased VAT on tobacco products with an aim to protect the health of its people.
In fact, in her Budget speech Delhi Chief Minister Sheila Dikshit categorically stated that tobacco products are injurious to health and it is therefore the Government’s duty not to encourage such items.
The ASSOCHAM study said, “Consumption of cigarettes among teenagers between ages of 14 and 19, especially in metropolitan cities, has increased due to smoking by parents, availability and price of tobacco, lack of parent involvement, approval of smoking by siblings and lower self-esteem among teenagers.”
The contradictory stand taken by the ASSOCHAM in favour of cigarettes has not gone down well with NGOs which alleged the business chamber was dancing to the tune of the tobacco lobby at the cost of the lives of millions of youth.
“At a time when its own study, forget about various other scientific studies, have pointed out that cigarette is injurious to health, particularly of the youth, we expected the ASSOCHAM to be more responsible and seek higher VAT to make them unaffordable for many,” said Bhavna Mukhopadhyay, an activist from Voluntary Health Association of India (VHAI).
But clearly, the ASSOCHAM is ignoring thousands of people who lose their lives due to cancer caused by smoking, she added.
However, general secretary of national ASSOCHAM, DS Rawat felt otherwise as he justified the action. He said, “There is nothing wrong in seeking uniform VAT on cigarettes as divergence rates will lead to large-scale smuggling, evasion of taxes and other criminal activities.”
He countered, “You should be appreciative of the fact that the ASSOCHAM has conducted such a study. But how can we recommend the Government to hike the VAT or ban the products only because it is injurious to health?” Incidentally, it was the business chamber which had strongly protested the Government’s Budget proposal seeking imposition of five-per cent service tax on the healthcare sector arguing that it would burden poor patients.
--Agencies--
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