India’s recent overhaul of cigarette and tobacco taxation—removing the GST compensation cess and introducing a mix of GST, excise duties, and a new “National Health Security Cess Act, 2025”—has been presented as a public health win. Evidence shows that higher prices can discourage tobacco use. However, helping users quit cessation requires more than price increases. According to GATS-2 (2016–17), 55 per cent of smokers and 50 per cent of smokeless tobacco users expressed a willingness to quit tobacco; however, the actual quit rate remains low, underscoring the gap between intent and actual access to cessation support.
Closing this gap requires comprehensive, well-funded interventions including counselling and behavioural programmes, quitlines, nicotine replacement therapies and prescription medications, awareness campaigns, smoke-free environments, and systemic follow-up to prevent relapse. Without such structured support, many addicted users may struggle to quit despite higher costs.
As policymakers celebrate revenue collections, they risk ignoring the stark reality that cessation services in India are chronically underfunded and poorly resourced.
This article is originally published in Mathrubhumi English.
Link:
https://english.mathrubhumi.com/amp/features/specials/no-smoking-day-india-tobacco-tax-policy-cessation-support-analysis-ezts52fc
India is currently grappling with a multidimensional public health crisis, in which its tobacco control framework is fundamentally impeded by deep-rooted structural misalignments and persistent conflicts of interest. The current regulatory model has traditionally focused on cigarettes, which represent only 10% of total tobacco consumption, while largely overlooking the far more prevalent and harmful smokeless tobacco (SLT) products and beedis, which together account for the remaining 90%. This imbalance is worsened by a stark fiscal paradox: despite tobacco taxes generating ₹ 72,788 crore in 2022–23, the country allocates less than 0.07% of this revenue to the National Tobacco Control Programme (NTCP). Chronic underfunding, combined with weak utilisation of approved funds, has resulted in inadequate cessation services and low.
Additionally, the “cottage industry” tax exemption for unbranded beedis, enables widespread tax evasion, making cheaper, more harmful tobacco products highly accessible to low-income populations. This regulatory loophole sustains a development trap affecting an estimated 45.7 million individuals.
This paper argues that incremental adjustments are insufficient to disrupt this cycle and achieve substantial public health gains.
Knowledge Partner: Centre for Public Policy Research (CPPR)
Access to adequate, safe, and affordable housing is recognised as a universal right and a key target for sustainable development. Yet in India, the challenge remains severe—an estimated 18 million people live without shelter, and as per the United Nations (2021), 35 percent of the urban population lives in substandard housing, amounting to nearly 170 million people. Rising urbanisation and population pressure have only intensified this demand.
Despite India presenting one of the largest prospects for affordable housing, private sector investment has been limited—only 17 percent since 2011. This underlines the urgent need for an enabling environment that fosters competition, efficiency, and innovation in the housing sector, especially housing for the urban poor.
To better understand these challenges, a study on anti-competitive practices in the construction industry was undertaken. The study assessed how such practices affect access to affordable and safe housing for the urban poor, and explored how market-oriented solutions, along with robust competition laws and policies, could help address the gaps.
The COVID-19 pandemic further underscored the importance of secure housing. For developing countries like India, providing affordable housing for economically weaker sections is not just a social imperative but also a development priority. Addressing the root causes of inefficiency and restrictive practices is essential to ensure inclusive growth.
India should create a more conducive environment for affordable housing for its urban poor, which can lead to increased growth and improved access. Read the report for the study results and recommendations proposed!
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