Kathmandu. Rastriya Swatantra Party lawmaker Toshima Karki demanded tax on tobacco products to be increased to at least 50 per cent. Speaking at a programme on the public health tax, lawmaker Karki said the policy was mandatory to improve the public health and make health insurance sustainable.
“We have recommended increasing tax on tobacco products by 50 per cent by 2035 BS,” she shared. The main purpose of the tax is not only to collect revenue but also to reduce the consumption of tobacco products. “The current 3 to 5 percent tax hike will not change the behavior of consumers,” she said.
He said that only adequate tax increases can reduce consumption and reduce the burden of disease. Lawmaker Karki presented the data that Nepal has imposed the smallest tax on tobacco products (around 41 per cent) among the South Asian countries.
“Tobacco products not only cause cancer but also serious blood vessel diseases (such as Berger’s disease). As a result, the productivity of the citizens decreases, the disability increases, and the financial burden on the state. ’
The tax hike will help reduce consumption, especially for the youth and low-income groups, she said, adding that such a move is also in the interest of the poor. Karki proposed that revenue collected from tax levied on tobacco products, alcohol and harmful beverages should be invested in the health insurance sector.
“The revenue collected now is being used elsewhere by the state,” she said. If it is applied to the health sector, especially to the restructuring of health insurance, then the people will gladly accept it. ’
“Children, pregnant women and people with chronic diseases are at high risk from smoke inhalation,” she said, underlining the need for the state to pay special attention to control the social cost of passive smoking.
She said that she has been continuously holding discussions with Finance Secretary and Finance Minister regarding restructuring of health insurance in the context of final preparation of budget statement.
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