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The association between state VAT in tobacco use in India: Evidence from GATS and TCP India Survey
Significance
- Recent VAT hikes on tobacco in India might reduce smoking.
- Rising tobacco taxes in India could curb smoking rates.
- Increased VAT on tobacco products may lower smoking prevalence.
- Higher tobacco taxes in India could lead to reduced smoking.
- Recent VAT increases on cigarettes might impact smoking habits.
State value-added taxes (VAT) (Research done in pre GST era, however, the taxation have only increased since then, therefore keeping intact the significance of the study) on tobacco products have significantly increased in recent years in India. Therefore, that increased taxes might lead to reduced smoking.
Impact of Increased VAT on Tobacco Consumption: Insights and Importance
State VAT on tobacco products has increased significantly in India since pre-GST research, highlighting the study’s relevance. Understanding how VATs affect smoking is crucial in this context.
The link found in State bidi and cigarette VAT rates. Global Adult Tobacco Survey (GATS) India 2009–2010 and Tobacco Control Policy (TCP) India Survey waves 1 (2010–2011) and 2 (2012–2013), respectively. The connection between bidi VAT rates and bidi smoking. Between the two VAT rates and dual use of bidis and cigarettes, and between cigarette VAT rates and cigarette smoking.
Further stratified analyses by gender were performed besides logistic regression.
A 10% increase in cigarette VAT rates was related. With a 6.5% reduction in dual usage of cigarettes and bidis. That was evident among adults and a 0.9% reduction in cigarette smoking among males in TCP; and a substantial 21.6% decrease in dual use among adults as well as a 17.2% decrease in cigarette smoking among males in GATS, when significant level as 0.05. As the prevalence of female smoking was extremely low. These associations were not significant for females.
Increased taxes on tobacco products may lead to reduced smoking rates. However, it remains unclear whether these effects are short-term or long-term. To fully understand the impact of higher state VATs on smoking behavior, longitudinal research is necessary. Such studies will provide insights into whether the reduction in smoking persists over time or if the effects diminish, offering a clearer picture of the long-term effectiveness of tax increases in tobacco control.
References
Image: IStock
Contact: Ce Shang, The Ohio State University Wexner Medical Center
Source: Nicotine and Tobacco research
