The association between state VAT in tobacco use in India: Evidence from GATS and TCP India Survey

Summary: 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.

Source: Nicotine and Tobacco research.

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 has significantly increased in recent years in India. The evidence on how these VATs were associated with smoking is highly required in such a 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.

Therefore, that increased taxes might lead to reduced smoking. Nevertheless, it is still unclear if these impacts are short-term or long-term; only post-longitudinal research can provide an answer.