Are taxes on cigarettes adequate to deter consumers in India?

Recent analysis highlights that the current taxation on cigarettes in India constitutes only 53% of their retail price, significantly below the World Health Organization's recommended threshold of 75%. This disparity raises concerns about the effectiveness of existing tax policies in curbing tobacco consumption. High taxation is widely recognized as a vital strategy to deter smoking, especially among younger populations and lower-income groups. Health experts argue that increasing these taxes could not only reduce smoking rates but also generate additional revenue for public health initiatives. Despite the government's recognition of the health risks associated with tobacco use, the current tax structure appears insufficient to address the public health crisis posed by smoking. As India grapples with high rates of tobacco-related diseases, there is a pressing need for policy reform to align tax rates with global standards, thereby potentially enhancing their efficacy in protecting public health.