Increased Taxes and Regulation of Indian Cigarillos (Bidi) Industry: Effects on Revenue and Years of Life Lost

Indian cigarillos (bidi) are low-cost alternatives to cigarettes with only 22% imposed taxes, and turnover of up to INR 4 million per annum exempted from taxation. This study estimates revenue implications and potential loss of life years (YLLs) averted if the bidi industry is subjected to increased regulations and taxation. The study presents empirical evidence of how the currently underutilized tool of taxation, as proposed in the WHO–FCTC, can be used to decrease bidi smoking prevalence and save measurable life years while generating government revenue simultaneously. A national action is needed to drive the policy decisions toward increased regulation and taxation and revision of India’s tobacco control legislation.

Published June 5, 2024

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