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Page 1: ECONOMY Fact Sheetsaftcindia.org/pdf/Media_Pack_WNTD 2009_IPH-DATC_Bangalore.pdf · fertility in women. Cost of only three major diseases (Coronary Artery Diseases, Chronic Obstructive

1

hjklqwertxrtyuiopasdfghjklzxcvbnmqwertyuiopjopasdfghjcvbnmqwertyui LIVELIHOODsklzxcvbnmqwertyuiopasdfghjkECONOMYlzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqLIVELIHOODSwertyuiopasdfghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmTAXATIONqwertyuiopasdfghjklzxcvbnmrtyuiopasdfghjklzxcvbnmqwertyuiopasdfHEALTHghjklzxcvbnmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdfgECOLOGYhjklzxcvbnmqwertyuiopasdfghjklzxcvFACTSwertyuiopasdfghjklPEOPLEmqwertyuiopasdfghjklzxcvbnmqwertyuiopasdf

2009

Fa

ct

Sh

ee

ts

TOBACCO

World No Tobacco Day

Page 2: ECONOMY Fact Sheetsaftcindia.org/pdf/Media_Pack_WNTD 2009_IPH-DATC_Bangalore.pdf · fertility in women. Cost of only three major diseases (Coronary Artery Diseases, Chronic Obstructive

Tobacco use – Adverse effects on Health, aesthetics, economy

Source: Report on Tobacco Control in India 2005, and others Source: Study by Salam Bombay Foundation 2008

Tobacco Use

Tobacco use is directly and/or indirectly responsible for innumerable health illnesses and has become a major public health tIndia. This health burden translates into a huge economic burden in terms of health care costs that are mainly born by peotheir pocket. There is growing concern particularlytobacco use has devastating impact on ecology in te

Tobacco use leads to destruction of forests by…o Cutting of trees to create space for tobacco

farming and to produce wood required of tobacco.

o Cutting of trees and tree leaves for packaging of tobacco products.

o Drainage of sub-soil water and depletion of soil nutrients leaving the soil useless for other crops

8 Kg. of wood is needed to cure 1 kg. of tobacco About 70 million tonnes of paper is used every year

for cigarettes wrapping For around every 300 cigarettes smoked by

someone, somewhere a full-grown tree would have been killed.

Smoke from cigarettes, bidis and other smoked tobacco products adds to environmental pollution.

Tobacco use leads to staining of teeth and pigmentation of palms/finger/nails.

Use of smoked tobacco leads to dark/black lips (smoker’s lip).

Tobacco use leads to hair-loss and wrinkling of skin giving an aged look.

Tobacco use results in smelly mouth, cloths and bodies.

In India, 87% of girls and 77% of boys did not find smokers attractive.

67% of boys and girls said that they would not date a smoker. While 75% said that they would not marry a smoker.

2

Adverse effects on Health, aesthetics, economy and ecology

Source: Report on Tobacco Conrtol in India 2005, Health India – Website by Ministry of Health and Family Welfare, Govt. of India

Source: Report on Tobacco Control in India 2005, National Account Satistics 2006

Tobacco Use – Adverse Effects

Tobacco use is directly and/or indirectly responsible for innumerable health illnesses and has become a major public health tIndia. This health burden translates into a huge economic burden in terms of health care costs that are mainly born by peo

icularly among young people regarding cosmetic effectsy in terms of destruction of forest and fertile land.

Tobacco use leads to destruction of forests by… Cutting of trees to create space for tobacco

required for curing

Cutting of trees and tree leaves for packaging of

soil water and depletion of soil soil useless for other crops

of tobacco of paper is used every year

For around every 300 cigarettes smoked by grown tree would have

Smoke from cigarettes, bidis and other smoked cts adds to environmental pollution.

One tobacco related death occurs every eight seconds in India! Around 2500 people die each day because of tobacco use toll of around 9 lakh.

56.4% of cancers in men and 44.9% of cancers in women are caused by tobacco in India.

India accounts for largest number of mouth cancers in the world and more than 90% of lung other lung diseases in India.

Tobacco users are 2 to 3 times more likely to develop heart diseases and paralysis apart from increased risk of diabetes.

Tobacco use leads to impotence in men and reduce fertility in women.

Cost of only three major diseases (Coronary Artery Diseases, Chronic Obstructive Lung Disease, Cancers) in the year 2001estimated to be Rs. 313.69 billion.

Health care costs constitute a huge economic burden particularly for people given the facts that this is a conservative estimate of only 3 diseases by tobacco and that the 85% of health expenditure in India is made out-of

In the year 2006-07, personal expenditure on tobacco consumption was Rs. 4half of total expenditure on health services

and ecology

Source: Report on Tobacco Conrtol in India 2005, Website by Ministry of Health and Family

Welfare, Govt. of India

Source: Report on Tobacco Control in India 2005, National Account Satistics 2006-07 Govt. of India

Adverse Effects

Tobacco use is directly and/or indirectly responsible for innumerable health illnesses and has become a major public health threat in India. This health burden translates into a huge economic burden in terms of health care costs that are mainly born by people from

effects of tobacco use. Importantly,

One tobacco related death occurs every eight seconds in India! Around 2500 people die each day because of tobacco use accounting for annual death

56.4% of cancers in men and 44.9% of cancers in tobacco in India.

India accounts for largest number of mouth cancers in more than 90% of lung cancers and

other lung diseases in India. Tobacco users are 2 to 3 times more likely to develop heart diseases and paralysis apart from increased

Tobacco use leads to impotence in men and reduce

Cost of only three major diseases (Coronary Artery Diseases, Chronic Obstructive Lung Disease, Cancers) in the year 2001-02 was estimated to be Rs. 313.69 billion. Health care costs constitute a huge economic

den particularly for people given the facts that this is a conservative estimate of only 3 diseases by tobacco and that the 85% of health expenditure

of-pocket. 07, personal expenditure on

tobacco consumption was Rs. 440.67 billion nearly half of total expenditure on health services.

Page 3: ECONOMY Fact Sheetsaftcindia.org/pdf/Media_Pack_WNTD 2009_IPH-DATC_Bangalore.pdf · fertility in women. Cost of only three major diseases (Coronary Artery Diseases, Chronic Obstructive

3

Tobacco and financial implications- Who gains? Who is at loss?

Due to availability of good research on health care cost for 2001-02, here is an attempt to highlight and compare various facets of tobacco economy in that year along with the recent statistical updates.

Tobacco generates relatively large amount of revenue for Governments. However there is a huge health care and social cost associated with tobacco related diseases. People spend a fortune on consuming tobacco products and given the predominant out-of-pocket spending on health care, bear huge health care costs. Government’s total budget for public health falls short of the personal expenditure on tobacco consumption as well as of and health care costs for tobacco related diseases. Only player that gain out of tobacco is the tobacco industry but again the majority workers in Industry don’t get the share.

Revenue generated (2000-01)*

Rs. 90.87 billions

Revenue from tobacco is relatively high forming around 12% of total excise revenue in 2000-01. However most of this revenue is generated from cigarettes (80% of total revenue from tobacco) due to higher excise/export duties form only 14% of tobacco consumption.

*Tobacco Board 2002

Net Profit by Indian Tobacco Company (2001)*

Rs. 10.06 billions

ITC is one of the four major cigarette companies and constituted 71% of cigarettes market in 2001. It registered a growth of 27% in the net profit in year 2001. Note that in that year the cigarettes constituted only 16% of tobacco market with chewing tobacco raising its market share to 36%. Rest include and Bidis. Despite huge profits, majority of workers in tobacco industry are poorly paid and face exploitation and grave occupational health hazards

*ITC Press Release 31st March 2001

Consumer expenditure on tobacco*

Rs. 283.33 billions

Consumption expenditure on tobacco makes a significant part of the personal cost. From 1950 to 1974, personal final consumption expenditure on tobacco exceeded the expenditure on medical and health services. After this period, there has been a reverse trend-with the staggering health care cost on tobacco related diseases being one of many reasons. Remember that highest tobacco consumption is by those who are poor.

*National Accounts Statistics 2001-02

Cost of only 3 major diseases caused by tobacco (2001-02)*

Rs. 313.69 billions

In India, out of pocket expenditure (private spending) constitutes 85% of total expenditure on health and medical services. Furthermore, the above estimate doesn’t consider the social costs and is an estimate for just 3 tobacco attributable diseases while tobacco is directly and indirectly responsible for innumerable illnesses.

*Ministry of H & FW Report on Tobacco Control in India 2004

Tobacco & Economy

Total budget on Medical, Public Health, Water Supply & Sanitation (2001-02)*

252.54 billions

We can see that the total budget (centre and states) on public health was less than the total personal expenditure on tobacco products! It is even less that health care cost of just 3 diseases-apparently because of significant private spending on health care!

*Indian Public Finance Statistics

Revenues generated in the year 2006-07 were Rs. 122.93 billion. However its share in the total revenues has remained 10-13% since 1961.

Total budget for Medical, Public Health, Water Supply & sanitation in the year 2006-07 was Rs. 493.31 billion. This figure is fairly comparable with that of personal expenditure on tobacco consumption in the same year.

Net profit by ITC for the year 2006-07 by grew by 20.8% to reach Rs. 27 billion. Note that ITC has now diversified in other sectors and the stated profit is inclusive of all.

In the year 2006-07 personal expenditure on tobacco consumption was Rs. 440.67 billion. It is 43% of personal expenditure on healthcare.

This figure would have gone significantly up with the population growth and predicted rise in tobacco related mobility and mortality. It has been estimated that there would be 0.23-0.28 millions new tobacco related cancers in India.

Page 4: ECONOMY Fact Sheetsaftcindia.org/pdf/Media_Pack_WNTD 2009_IPH-DATC_Bangalore.pdf · fertility in women. Cost of only three major diseases (Coronary Artery Diseases, Chronic Obstructive

Tobacco Control – Impact on other industries

It is often claimed that legislative measures for tobacco control exerts negative impact especially on hospitality and tourism industry and hence on economy in general. Here are the findings from empirical economic impact studies from countries where such

A comprehensive review of available studies on the economic impact of smokestudies report no impact or a positive impact of smokeworkers and patrons from the toxins in secondhand smoke confident in rejecting industry claims that there will be an adverse impact.”10

Sources:

1 Edwards R, Thomson G, Wilson N, Waa A, Bullen C, O’Dea D, et al. After the smoke has cleared: evaluation of the impact of a new national smokein New Zealand. Tobacco Control. 2008

2 Edwards R, Bullen C, O’Dea D, et al. After the smoke has cleared: evaluation of the impact of new smoke3 Luk R, Ferrence R. The Economic Impact of Smoke-free Legislation on the Hospitality Industry. Toronto: Ontario Tobacco Research Unit; 2005.4 Ontario Tobacco Control Research Unit (2004). The Tobacco Control Envir

2003-2004. 5 Hyland H, et al. New York’s Smoke-free Regulations. Cornell Hotel & Restaurant Admin Quarterly. 2003 June. 96 Ludbrook, Anne, et al. (2005) International Review of the Health and Economic Impact of the Regulation of Smoking in Public Places. Health Economics

Research Unit and Department of Public Health University of Aberdeen. 7 Gonzalez-Rozada M, Molinari M, Virgolini M. The Economic Impact of Smoke

Buenos Aires: Universidad Torcuato Di Tella; 2008. 8 Lund, Marianne (2005). Smoke-Free Bars and Restaurants in Norway. SIRUS, National Institute for Alcohol and Drug Research.9 van Walbeek C, Blecher E, van Graan M. Effects of the Tobacco Products Control Amendment Acto f 1999 on restaurant revenues in South Africa

approach. S Afr Med J. 200. 10 Scollo M, Lal A, et al (2003). Review of the quality of studies on the economic effects of smok

• An evaluation of New Zealand’sa positive impact on the restaurant1.5% and 3.3% respectively in 2005

New Zealand

• A 2005 review of 115 studies fromhave a negative impact on the sales,the long term.”3

• A Canadian report demonstratesimpact on sales in bars and restaurants

• Peer-reviewed articles have concludedthere was no evidence that the hotel

Australia,Canada,

United States

• In Scotland, a review of the healthusing sales tax and employmentScotland

• In Argentina, a study of the smokethat the laws did not negativelythe smoke-free law induced an increase

Argentina

• In Norway, customer frequencysmokers8.Norvey

• Following South Africa’s smokeremaining 19% reported an insignificant

South Africa

There is ample scientific evidence to show that tobacco control measures do not have a negative impact on hospitality or tourism industry. In fact it may have some positive impact. Hencetobacco control legislation/measures as often

4

other industries

It is often claimed that legislative measures for tobacco control exerts negative impact especially on hospitality and tourism industry and hence on economy in general. Here are the findings from empirical economic impact studies from countries where such legislative measures are in place.

A comprehensive review of available studies on the economic impact of smoke-free workplace laws concluded that: “All of the best designed studies report no impact or a positive impact of smoke-free restaurant and bar laws on sales or employment. Policymakers can act to protect workers and patrons from the toxins in secondhand smoke confident in rejecting industry claims that there will be an adverse

llen C, O’Dea D, et al. After the smoke has cleared: evaluation of the impact of a new national smoke

Edwards R, Bullen C, O’Dea D, et al. After the smoke has cleared: evaluation of the impact of new smoke-free law. Wellington: Ministry of Health; 2006.free Legislation on the Hospitality Industry. Toronto: Ontario Tobacco Research Unit; 2005.

The Tobacco Control Environment: Ontario and Beyond. Special Reports: Monitoring and Evaluation Series,

free Regulations. Cornell Hotel & Restaurant Admin Quarterly. 2003 June. 9-16. f the Health and Economic Impact of the Regulation of Smoking in Public Places. Health Economics

Research Unit and Department of Public Health University of Aberdeen. Rozada M, Molinari M, Virgolini M. The Economic Impact of Smoke-Free Laws on the Sales of Bars and Restaurants in Argentina [working paper ].

Free Bars and Restaurants in Norway. SIRUS, National Institute for Alcohol and Drug Research.cher E, van Graan M. Effects of the Tobacco Products Control Amendment Acto f 1999 on restaurant revenues in South Africa

Scollo M, Lal A, et al (2003). Review of the quality of studies on the economic effects of smoke-free policies on the hospitality industry. Tobacco Control.

2003 smoke-free law showed no significant impact on the touristrestaurant and café sector1. In fact, the number of overseas visitors and

2005, to record level2.

from Australia, Canada, and United States demonstrated that “smokesales, revenues, profits and employment of restaurants, bars, hotels,

demonstrates that the implementation of Ontario’s comprehensive smoke freerestaurants4.concluded that New York City’s smoke-free law did not harm the

hotel industry had been adversely affected5.

health and economic impacts of smoking restrictions on the hotel,employment data, “have failed to find any statistically significant effect.”6

smoke-free laws in Buenos Aires and the provinces of Cordoba, Santaaffect the revenue of bars and restaurants. In the case of Buenos

increase in the revenue of bars and restaurants7.

frequency figures for bars and restaurants were virtually unchanged after

smoke-free law, 81% of restaurants saw either no change or a positiveinsignificant decrease in revenue9.

Tobacco & Economy

There is ample scientific evidence to show that tobacco control measures do not have a negative impact on hospitality or tourism industry. In fact it may have some positive impact. Hence adverse economic impact to resist

s often claimed by industry is an ill founded argum

It is often claimed that legislative measures for tobacco control exerts negative impact especially on hospitality and tourism industry and hence on economy in general. Here are the findings from empirical

legislative measures are in place.

free workplace laws concluded that: “All of the best designed aws on sales or employment. Policymakers can act to protect

workers and patrons from the toxins in secondhand smoke confident in rejecting industry claims that there will be an adverse economic

llen C, O’Dea D, et al. After the smoke has cleared: evaluation of the impact of a new national smoke-free law

e law. Wellington: Ministry of Health; 2006. free Legislation on the Hospitality Industry. Toronto: Ontario Tobacco Research Unit; 2005.

onment: Ontario and Beyond. Special Reports: Monitoring and Evaluation Series,

f the Health and Economic Impact of the Regulation of Smoking in Public Places. Health Economics

he Sales of Bars and Restaurants in Argentina [working paper ].

Free Bars and Restaurants in Norway. SIRUS, National Institute for Alcohol and Drug Research. cher E, van Graan M. Effects of the Tobacco Products Control Amendment Acto f 1999 on restaurant revenues in South Africa – a Surrey

free policies on the hospitality industry. Tobacco Control.

industry and some evidence oftheir expenditure increased by

“smoke-free legislation does nothotels, and gaming facilities over

free law in 2001 had no negative

city’s restaurant industry; and

bar, and restaurant industries,

Santa Fe and Tucuman, showedBuenos Aires, there is evidence that

after the smoking ban, including

positive change in revenue. The

Economy

There is ample scientific evidence to show that tobacco control measures do not have a negative impact on adverse economic impact to resist

argument.

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5

Tobacco Industry: A source of livelihood—For How Many?

The number depends on who is reporting… Industry usually inflates the number…

Claimed by Tobacco Industry Acc. To Govt. Surveys

35 millions peoples (6 million farmers, 20 millions farm workers, 4.4 millions bidi workers, 2.2 millions tendu leaf pluckers and 2 millions traders/retailers)- As per Tobacco Institute of India : Golden Leaf in Parliament New Delhi 2002 Over 6 million people in Bidi Industry—All India Bidi Cigar & Tobacco Workers Federation: 2000 In A letter to Tobacco Free Initiative WHO

Less than 0.5 millions Employed in tobacco production industries—As per Annual Survey of Industry (ASI 2001-2002) 3.5 Millions People in tobacco related employment—As per National Sample Survey 50th Round

Vast majority of positions in tobacco industry are available only on part time or seasonal basis with the full time opportunities available only in cigarette manufacturing, leaf processing, distribution and retailing. Apparently, distributors and retailers in most instances deal with many other items than just tobacco and hence for them it’s only a part of their livelihoods that come from tobacco. On the other hand cigarette manufacturing industry has a little share of total employment in tobacco manufacturing industry with 85% of employees being employed in bidi industry – a labor intensive industry with less sophisticated manufacturing techniques. According to the Annual Survey of Industry (2004-05) 4.73 lakhs people were employed in tobacco industries.

Livelihoods—For whom? How much do they earn? Most of employment in tobacco industry is generated by workers in manufacturing and that too particularly in Bidi industry. However these are the very people who receive least income and most live below poverty line. 99.99% of these workers work in private sector and 61.9% of these are on contractual basis. Of 38.1% of directly appointed workers, 68% are women*. The All India Bidi, Cigar, and Tobacco Workers Federation estimates that women comprise 90-95% of total employment in Bidi manufacture. Around 15-25% of total employees in bidi industry are estimated to be children less than 14 years of age. Average daily earning by these workers stand at Rs. 58 with contractual workers being paid only Rs. 46.3 a day. Women who constitute majority of workers remains severely underpaid. Among directly appointed workers, women are paid less than half of their male counterpart. Women contractual workers are paid least*. Only around 50% of factories in industry offer some kind of bonus/PF/Welfare measures.

Livelihood at cost of their own lives—Occupational exploitation and Hazards Economic exploitation of women in bidi industry by middle men and contractors is well documented. In 2003, factory sector employed only 10% of workers in Bidi industry. This largely home based work in bidi industry promotes child labor and deters implementation of appropriate working conditions, minimum wage and other welfare measures as well as access of workers trade unions. A study from South India reported that majority of women workers unaware of welfare schemes/measures and only 9% of women workers were members of a trade union. Tobacco growers develop Green Leaves Sickness. Bidi rollers, as they are often not provided with protective masks/gloves/clothing are exposed to tobacco dust through their skin and inhaling of harmful particles leading to respiratory problems including bronchial asthma, the incidence of which is higher among bidi workers than any other population group. Further health effects include pain and cramping in the shoulders, neck, back, lower abdomen, anemia and eye problems. Despite the welfare measures by Govt. which provides for health care for bidi workers, study by International Labor Organisation demonstrated that female bidi workers preferred to seek health care from private sector providers within their villages rather than travelling long distances to reach designated hospital facilities specified under the Welfare Fund Act.

Tobacco Control—Loss of Livelihoods?

According to the National Family Health Survey, 46.5% of males and 13.8% of females are regular tobacco users (>15 years). Of these, around 30% of males and 2.5% of females are regular smokers. Even with proposed tobacco control measures (Health Warnings, Raised taxes, Regulations on sale etc.) the reduction in tobacco use prevalence will be rather slow. Going with the best case scenario of 1% annual reduction in prevalence proposed by Economic and Social Council of UN, the absolute number of persons consuming tobacco in India will go up given the projected population growth of 300 million between 2000 and 2020. Hence there will not be a sudden loss of livelihoods of people working in tobacco industry. In adherence to Article 17 of FCTC (WHO), Indian Government is currently exploring alternatives for tobacco workers including crop substitution and diversification.

Tobacco & Livelihoods

Tobacco Industry provide livelihoods to people mainly through bidi industry that employ 3-5 millions of poor people who are often exploited, poorly paid and face occupational health hazards. Welfare measures have done little to improve their condition. Tobacco control measures will not drastically reduce employment in tobacco industry. Creation of alternative livelihood options for these workers is being explored by Government which will be the best solution.

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Tobacco products – Case of disproportionate taxation

Bidis and other tobacco products having higher consumption are significantly under taxed compared to cigarettes. Current excibidis and cigarettes as a percentage of their retail price is 9% and 33%

Tobacco products (% of population consuming tobacco product)

Source: Dept. of Revenue, Government of India. *Inclusive of other tobacco products such as Misri, Dhumti etc.

Uniform taxation – Protecting Vulnerable Empirical studies show that those from lower socioeconomic strata are more sensitive to price rise. It’s the poor who consumetobacco more and that too mainly in form of bidis and other traditional tobacco forms. Raising taxes on bidis and a move towaUniform taxation will reduce tobacco consumption and deter youngsters from taking up tobacco.

Benefits of higher and uniform taxation

Obligations and scope for higher taxationUnder the article 6 of the Framework Convention on Tobacco Control (An international treaty by WHO ratified by India) India iobligated to put in place an apprpriate tax and price policy. In India, tobacco products became 50% more affordable during 19802000. In lower income countries, tobacco taxes are generally less than half of the total price while in developed countries, comprise between 2/3rd and 4/5th of the retail price of cigarettes.

Hand-made (98%)Bidi (54.26)

Machine-made (2%)

Cigarettes(13.30%)

Gutkha(< 9.29%)*

-According to World Bank, 10% increase in prices of tobacco products will reduce their use by 8% in developing countries. -Raising tobacco taxes can prevent about 10 million tobacco related deaths, 9 million of these in low and middle income countries. -Earmarking of these tobacco taxes helps generate more fund for tobacco control and health promotion activities

Current tax structure in the India is disproportionate tobacco products will help to deter consumption of such products. People from lower economic strata and youngsters sensitive to price rise and hence higher taxation will help to protect them from tobacco menace. There are many economic, sochealth benefits of higher taxation on tobacco. Thereso under Framework Convention on Tobacco Contro

6

Case of disproportionate taxation

Bidis and other tobacco products having higher consumption are significantly under taxed compared to cigarettes. Current excibidis and cigarettes as a percentage of their retail price is 9% and 33% or higher respectively.

Excise duty – Rs. per 1000 sticks/packs(% of population consuming tobacco product)

. *Inclusive of other tobacco products such as Misri, Dhumti etc.

Protecting Vulnerable Empirical studies show that those from lower socioeconomic strata are more sensitive to price rise. It’s the poor who consumetobacco more and that too mainly in form of bidis and other traditional tobacco forms. Raising taxes on bidis and a move towa

niform taxation will reduce tobacco consumption and deter youngsters from taking up tobacco.

Benefits of higher and uniform taxation

Obligations and scope for higher taxation Under the article 6 of the Framework Convention on Tobacco Control (An international treaty by WHO ratified by India) India i

n apprpriate tax and price policy. In India, tobacco products became 50% more affordable during 19802000. In lower income countries, tobacco taxes are generally less than half of the total price while in developed countries,

of the retail price of cigarettes.

made (98%)

made (2%)

16

29

168 to 2163Acc. to length

334 to 2727Acc. to value of pack

Tobacco & Taxation

-A 33% increase in tax on bidis and a 10% increase in tax on cigarettes would result in and 7% increase in Govt. revenue.-Lower consumption will lower the health care costs for tobacco related diseases.

According to World Bank, 10% increase in prices of tobacco products will reduce their use

prevent about 10 million tobacco related deaths, 9 million of these

Earmarking of these tobacco taxes helps generate more fund for tobacco control and

-Higher taxation especially discourages tobacco use among young and poor -An increase in bidi taxation will result in increase in the part (now Rs. 4/1000sticks) of the excise duty that goes to Bidi Workers Welfare Cess, which aims to provide medical care, housing, social security, education and recreational facilities for bidi workers.

Economic

Current tax structure in the India is disproportionate as it favors bidi and other oral tobacco products. Raising taxes on bidis and other tobacco products will help to deter consumption of such products. People from lower economic strata and youngsters sensitive to price rise and hence higher taxation will help to protect them from tobacco menace. There are many economic, soc

There is enough scope for higher taxation in India and theControl-International Treaty by WHO.

Bidis and other tobacco products having higher consumption are significantly under taxed compared to cigarettes. Current excise burden on

Rs. per 1000 sticks/packs

.

Empirical studies show that those from lower socioeconomic strata are more sensitive to price rise. It’s the poor who consume tobacco more and that too mainly in form of bidis and other traditional tobacco forms. Raising taxes on bidis and a move towards

Under the article 6 of the Framework Convention on Tobacco Control (An international treaty by WHO ratified by India) India is n apprpriate tax and price policy. In India, tobacco products became 50% more affordable during 1980-

2000. In lower income countries, tobacco taxes are generally less than half of the total price while in developed countries, they

168 to 2163Acc. to length

334 to 2727Acc. to value of pack

Taxation

A 33% increase in tax on bidis and a 10% increase in tax on cigarettes would result in 25% and 7% increase in Govt. revenue.

lower the health care costs for tobacco related diseases.

Higher taxation especially discourages tobacco use

An increase in bidi taxation will result in increase in the part (now Rs. 4/1000sticks) of the excise duty that goes to Bidi Workers Welfare Cess, which aims to

housing, social security, education and recreational facilities for bidi workers.

Social

Health

favors bidi and other oral tobacco products. Raising taxes on bidis and other tobacco products will help to deter consumption of such products. People from lower economic strata and youngsters are more sensitive to price rise and hence higher taxation will help to protect them from tobacco menace. There are many economic, social and

nd the country is also obligated to do

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Tobacco Control Measures – What people of India think about it? Smoke free settings Public places/Work places/Restaurants and Bars Would you say that you favor or oppose the regulations making all workplaces and public places in India smoke

Smoking at public places, workplaces or at restaurants and exposehand smoke (passive smoking). In agreement with the scientific fact, most Indians feel that exposure to second hand smoke is harmful and it is the right of the peop

*Study by Healis Sekhsaria Institute of Public Health that surveyed residents in four cities Dec. 2008

91%•of Indiand surveyed indicated that it bothers them a lot when they are exposed to seconfhand smoke

94%

•of Indians surveyed believed that it is the right of consumers and employee to breath smoke-ree air in workplaces and public places (including restaurants and bars)

85%•of Indians agree and 72% stongy agreed that restaurants and bars are healthier and more enjoyable now that they are smoke

Tobacco Control &

Strongly

favor (94%)

All India

An overwhelming majority of people are in favor of legal provisions restricting use of tobacco at public places including work places, restaurants and bars. Significant importantly, majority of people support access to smoke

7

What people of India think about it?

Public places/Work places/Restaurants and Bars*:

Would you say that you favor or oppose the regulations making all workplaces and public places in India smoke

places, workplaces or at restaurants and exposes non-smokers and nohand smoke (passive smoking). In agreement with the scientific fact, most Indians feel that exposure to second hand smoke is harmful and it is the right of the people/workers/consumers to breathe smoke-free air.

*Study by Healis Sekhsaria Institute of Public Health that surveyed residents in four cities Dec. 2008

Indiand surveyed indicated that it bothers them a lot when they are exposed to

of Indians surveyed believed that it is the right of consumers and employee to breath

ree air in workplaces and public places (including restaurants and bars)

of Indians agree and 72% stongy agreed that restaurants and bars are healthier and more enjoyable now that they are smoke-free.

Tobacco Control & Public Opinion

Somewhat

favor (5%)

Oppose

(1%)

98%

92%

93%

90%

Stro

ngly

Fav

or S

mok

e-fr

ee P

rovi

sion

s

Serious Hazard (92%)

Do you feel that the smoke from other peoples’ cigarettes has serious/moderate/minor/no health hazards for non

An overwhelming majority of people are in favor of legal provisions restricting use of tobacco at public places including aurants and bars. Significant number of people is aware of hazards of secondhand smoke. More

majority of people support access to smoke-free environments as a basic right.

Would you say that you favor or oppose the regulations making all workplaces and public places in India smoke-free?

smokers and no-tobacco users to second hand smoke (passive smoking). In agreement with the scientific fact, most Indians feel that exposure to second hand

free air.

Public Opinion

98% • Mumbai

92% • Chennai

93% • Kolkata

90% • Delhi

Metro cities

Moderate Hazard (7%)

Minor Hazard (1%)

Do you feel that the smoke from other peoples’ cigarettes has serious/moderate/minor/no health hazards for non-smokers?

An overwhelming majority of people are in favor of legal provisions restricting use of tobacco at public places including aware of hazards of secondhand smoke. More

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Tobacco free schools: According to Global School Personnel Survey (India) 2006:

94.9% of school personnel in India strongly believe that schools should have a policy or rule specifically prohibiting tobacco use among students

95.2% of school personnel strongly believe that schuse among school personnel.

Higher and rational taxation for tobacco products A study** among 333 tobacco users in Mumbai showed that…

44% of tobacco users were of the opinion that, in view of the serious diseases caused by tobacco, prices of tobacco products should be increased.

About 39% of them were of the opinion that, the prices of the tobacco products should be increased by more than 30% whereas, 3% said it should be increased by 10%.

Hence, tobacco users themselves were of the opinion that the prices of tobacco products should be increased as it will make them quit r reduce consumption of tobacco.

Pictorial health warnings on tobacco products

Here are the findings from a study* that surveyed 712 people from Mumbai

**Study was conducted by Healis Sekhsaria Institute of Public Health

•97% of people surveyed were of thein India.

•Almost 85% of people wanted strong

Peoples' support for warnings

•With pictorial health warnings: 32.31.5% felt that smokers will think of

Peoples' percepitons on warnings

•88% people strongly agreed that thefrom May 31 2009) should be improved

•68% people showed high concern forwarnings.

Peoples' concerns for warnings

Tobacco Control &

Most of school personnel want tobacco free policies at schools that restrict tobacco use by students and school personnel. Evmajority of tobacco users are in support to raise prices (higher taxation) of tobacco products and feel that it will help thetobacco consumption. Pictorial warnings are being seen as effective way of reducing consumption of tobacco by tobacco users adeterring initiation of tobacco use by non users of topictorial health warnings on tobacco products.

8

According to Global School Personnel Survey (India) 2006:

94.9% of school personnel in India strongly believe that schools should have a policy or rule specifically prohibiting tobacco use among students 95.2% of school personnel strongly believe that schools should have a policy specifically prohibiting tobacco

Higher and rational taxation for tobacco products – tobacco users’ opinion

among 333 tobacco users in Mumbai showed that…

opinion that, in view of the serious diseases caused by tobacco, prices of

About 39% of them were of the opinion that, the prices of the tobacco products should be increased by more be increased by 10%.

Hence, tobacco users themselves were of the opinion that the prices of tobacco products should be increased as it will make them quit r reduce consumption of tobacco.

Pictorial health warnings on tobacco products

that surveyed 712 people from Mumbai…

Study was conducted by Healis Sekhsaria Institute of Public Health

the opinion that pictorial warnings should be displayed

strong pictorial warnings on cigarette packs to be diaplyed

.4% felt that non-smokers will think twice beforereducing smoking, 23% felt that smokers will think

the health warnings now proposed by Governmentimproved to convey very serious diseases caused by tobacco,

for the delay in implementation of the law pertaining

Tobacco Control & Public Opinion

Most of school personnel want tobacco free policies at schools that restrict tobacco use by students and school personnel. Evmajority of tobacco users are in support to raise prices (higher taxation) of tobacco products and feel that it will help thetobacco consumption. Pictorial warnings are being seen as effective way of reducing consumption of tobacco by tobacco users a

s of tobacco. In fact, people are concerned about dilution

94.9% of school personnel in India strongly believe that schools should have a policy or rule specifically

ools should have a policy specifically prohibiting tobacco

opinion that, in view of the serious diseases caused by tobacco, prices of

About 39% of them were of the opinion that, the prices of the tobacco products should be increased by more

Hence, tobacco users themselves were of the opinion that the prices of tobacco products should be increased

displayed on cigarette packs

diaplyed immediately.

before starting smoking,of quitting smoking.

(to be implementedtobacco, like cancer.

pertaining to pictorial health

Public Opinion

Most of school personnel want tobacco free policies at schools that restrict tobacco use by students and school personnel. Even majority of tobacco users are in support to raise prices (higher taxation) of tobacco products and feel that it will help them quit or reduce tobacco consumption. Pictorial warnings are being seen as effective way of reducing consumption of tobacco by tobacco users and

lution and delay in implementation of

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Developed by, Institute of Public Health # 250, Master’s Cottage, 2 C Cross, 2 C Main, Girinagar - 1st Phase, Bangalore – 560085. Ph.: (080) 26421929. Email: [email protected] www.iphindia.org In Collaboration with and supported by, District Anti Tobacco Cell, Bangalore (Bangalore Medical College and Research Institute) Near I.M.A. Circle, K. R. Road, Bangalore – 560002 Ph.: 09448008542. Email: [email protected]

Fact Sheets also available at www.iphindia.org

Design and compilation by Upendra Bhojani (Faculty, Institute of Public Health)

We acknowledge Healis Sekhsaria Institute of Public Health and HRIDAY for their help in providing some of the information contained in Fact Sheets.