Kathmandu. Increasing taxes on healthy, daily consumables will definitely hit the consumers. But there are some things in our public mind that are harmful even if used by many. On the one hand, the tax on such goods increases the tax income of the state, and on the other hand, due to the increase in taxes, the consumption of those goods decreases, and the health of the addicted will be benefited. Therefore, increasing the tax on such goods has multi-dimensional benefits to the state, the users and the society in every way. Such items include tobacco and alcohol that have adverse effects on public health. Studies around the world have shown that increasing taxes on harmful products such as tobacco, cigarettes, jaggery, and alcohol reduces their consumption. In Nepal too, the Nepal Development Research Institute (NDRI), which is reputed for its old and research, has been doing many studies, researches and debates on this issue.

According to NDRI, tax on tobacco products in Nepal is currently limited to 41 percent. This is the lowest rate in South Asia. South Asian country Bangladesh has a 73 percent tax on tobacco products. Bangladesh has set an example by imposing a tax on tobacco products to around 75 per cent set by the World Health Organization (WHO). Similarly, 68 per cent tax is levied on tobacco products in Sri Lanka, 65 per cent in the Maldives and 58 per cent in India. Developed countries such as the UK and Finland have imposed a tax of up to 90 percent of the retail price of tobacco products. Therefore, in a less developed country like Nepal, where the mortality rate of non-communicable diseases is increasing and the cost of treatment is increasing exponentially, it seems wise in every sense to increase the maximum tax on such goods.

According to the study, if the tax on tobacco products is increased by 60 percent from the current 41 percent, it will increase revenue by Rs 12 billion. According to the NDRI study, the tax increase at this rate will reduce the use of tobacco products by 5 to 11 percent. NDRI has recommended that the tax should be increased by at least 60 percent from the current tax rate as increasing the tax on tobacco products will increase the revenue of the government on the one hand and on the other hand it will have a positive impact on public health by reducing the use of such products.

According to NDRI, 39,200 people die every year due to the consumption of tobacco products in Nepal. That is, 107 Nepalis die every day and 4 people die every hour due to tobacco products.

More than 1.3 billion people worldwide are addicted to tobacco. More than 80 percent of them live in low- and middle-income countries. In Nepal, there are 67 lakh people who consume tobacco. In recent years, tobacco has become a major cause of death and disease in Nepal. KATHMANDU: Deaths due to the use of tobacco products have increased from 10 percent in 2090 to 24 percent in 2023. This has shown the need to increase concern, concern and concern in public health.

Studies have shown that people suffering from cancer, heart and lung diseases caused by the consumption of tobacco products are more expensive. If you get cancer, there is no guarantee that you will be cured.

According to the study, around Rs 48 billion is lost every year due to smoking in Nepal. In this way, the consumption of tobacco products directly causes financial loss of billions of rupees annually. This has indirectly caused a loss of billions of rupees to the country. Studies have also shown that addiction to tobacco is usually found in the age group of 15-19 years and it is difficult to get rid of such addiction. In that sense, once a person becomes a consumer of tobacco, he will be a regular customer of such a veil for the rest of his life. It is easy to imagine how deep this will affect the economy.

Tobacco is causing a lot of harm to another person’s health. It reduces a person’s ability to perform tasks and decreases productivity. The country’s economy is indirectly damaged. Therefore, it is very important for the government to increase the tax on tobacco. Looking at the examples of the world, one of the main ways to reduce the consumption of such things is to increase taxes.

The process of preparing the budget is underway. Learned Finance Minister Swarnim Wagle has also sought suggestions from the stakeholders. At this time, the Finance Minister and the Ministry of Finance need to revise the tax rate keeping in mind the damage that tobacco is causing to the country and public health. On the one hand, increasing the tax on tobacco products will remove such harmful things from the reach of the unhappy poor. It also helps in strengthening the state revenue coffers.

Currently, around 30 percent of the total population of Nepal consumes tobacco products, so it is natural to increase the tax to reduce it. In Nepal too, it would be better if we could increase the price of tobacco products to 70 percent like in Bangladesh.

In developed countries, efforts are being made to reduce the consumption of tobacco products through thorough research. Even a poor country like Nepal needs to think about such things.

In the past years, the tax on cotton products has been increased by a very small amount. As a result, the purchasing power of the people is also increasing, so its consumption has not decreased. But if the tax is increased properly, there is no doubt that the use of tobacco products will decrease. International experiments have shown the same.

The state should focus on making the citizens healthy. Whether it is a matter of making a budget or running a ministry, it is for the common people. Therefore, it is the duty of the state to address the issue of public health. If the people are healthy, the country will be healthy. Nor will the country progress in various fields including economic. Therefore, the government should move forward to reduce the consumption of not only tobacco products but also toxic products and alcohol. It is not in the interest of the limited neighbors, businessmen or commissioners. The tax rates of the budget should be increased keeping in mind the common people.

Some may argue that increasing the tax on graze and tobacco in Nepal can increase the illegal trade from India. But that argument has no merit. Because in India, more tax is on tobacco than in Nepal. He is also increasing it. In that sense, it would be wise for Nepal to increase taxes on cigarettes and tobacco products. It is necessary to include a special program to discourage the consumption and trade of tobacco products in the policy program of the budget. Which has a positive impact on Nepal’s economy directly or indirectly in the long run. It helps to reduce the damage that has been done to public health and the country’s economy over the years.

Rishab Gautam is an economic writer and analyst. )