Publication:
A Diagnostic of the Health Taxes Landscape in India

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dc.contributor.authorJohn, Rijo M.
dc.contributor.authorAraujo, Edson C.
dc.date.accessioned2025-04-22T18:42:12Z
dc.date.available2025-04-22T18:42:12Z
dc.date.issued2025-04-22
dc.description.abstractThe consumption of tobacco, alcohol, and sugar-sweetened beverages (SSBs) in India leads to significant public health and economic challenges, with 1.6 million deaths and 49.3 million disability-adjusted life years lost annually. These products are major risk factors for noncommunicable diseases, responsible for 64.9 percent of all deaths in India as of 2019. India is the world's second-largest tobacco consumer, with declining but still a substantial 267 million tobacco users. Alcohol consumption has seen per capita increases among drinkers, and India leads globally in sugar consumption. The economic burden from diseases related to these products is considerable, with tobacco-related costs at US$36.2 billion annually and alcohol-related costs at US$31.4 billion. Health taxes have been effective globally in reducing consumption and generating revenue while addressing market failures from negative externalities and internalities. India's current indirect tax system, involving a national-level Goods and Services Tax (GST) on tobacco and SSBs, as well as statelevel excise duties and value added tax (VAT) on alcohol, poses challenges due to its complexity and inconsistencies. Tobacco products are taxed under GST at 28 percent with additional cesses, but rates remain well below the World Health Organization's recommendations, and its structure is highly complex. The GST applied on SSBs is not commensurate with the product’s sugar content. Excise duties and VAT applied on alcoholic beverages vary significantly across states. Reforming health taxes requires addressing these inconsistencies, improving tax compliance, and introducing new tax structures based on the relative harm of each product. Empirical evidence on the effectiveness of health taxes in India is limited, particularly for alcohol and SSBs. Policy priorities include increasing specific excise taxes, replacing compensation cess with health tax, simplifying the tax structure, regulating marketing practices, and detailed state-level analysis of alcohol taxation to find a preferred taxation regime on alcohol.en
dc.identifierhttp://documents.worldbank.org/curated/en/099041425134514325
dc.identifier.doi10.1596/43108
dc.identifier.urihttps://hdl.handle.net/10986/43108
dc.languageEnglish
dc.language.isoen_US
dc.publisherWashington, DC: World Bank
dc.relation.ispartofseriesHealth, Nutrition and Population (HNP) Discussion Paper; October 2024
dc.rightsCC BY-NC 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttps://creativecommons.org/licenses/by-nc/3.0/igo
dc.subjectGOOD HEALTH
dc.subjectHEALTH TAXES
dc.subjectTOBACCO CONSUMPTION
dc.subjectALCOHOL CONSUMPTION
dc.subjectSUGAR CONSUMPTION
dc.subjectPUBLIC HEALTH CHALLENGES
dc.titleA Diagnostic of the Health Taxes Landscape in Indiaen
dc.typeWorking Paper
dspace.entity.typePublication
okr.date.disclosure2025-04-22
okr.date.doiregistration2025-04-24T02:19:50.050141Z
okr.date.lastmodified2025-04-17T17:04:50Zen
okr.doctypePublications & Research::Working Paper
okr.doctypePublications & Research
okr.docurlhttp://documents.worldbank.org/curated/en/099041425134514325
okr.guid099041425134514325
okr.identifier.docmidP175882-3f9ff3a7-ae12-4336-8b9a-592b5c5db5bb
okr.identifier.externaldocumentum40006880
okr.identifier.internaldocumentum40006880
okr.identifier.report200445
okr.import.id7185
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttps://documents.worldbank.org/curated/en/099041425134514325/pdf/P175882-3f9ff3a7-ae12-4336-8b9a-592b5c5db5bb.pdfen
okr.region.administrativeSouth Asia
okr.region.countryIndia
okr.sectorFY17 - Public Administration - Health
okr.sectorHealth
okr.themeFY17 - Pandemic Response,FY17 - Health Finance,FY17 - Health Service Delivery,FY17 - Health System Strengthening,FY17 - Public Finance Management,FY17 - Health Systems and Policies,FY17 - Disease Control
okr.themeFY17 - Public Sector Management,FY17 - Human Development and Gender
okr.topicHealth, Nutrition and Population::Public Health Promotion
okr.topicHealth, Nutrition and Population::Health Policy and Management
okr.topicMacroeconomics and Economic Growth::Taxation & Subsidies
okr.topicPoverty Reduction::Inequality
okr.unitHSAHN
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