The World Health Organisation (WHO) has imposed a "solidarity tobacco tax” on India, for non-compliance of the Framework Convention on Tobacco Control (FCTC), reported the Business Standard.
The amount of INR 2.5 billion (EUR 35.4 million) is an annual tax to be paid for each year, since 2009, until India fully complies with the FCTC.
Countering the move, the Union ministry of commerce and ministry of health have questioned the validity of WHO as a body to put a tax on any country.
The ministry of health , however, has obliged itself to be cutting down tobacco usage. India has ratified the WHO's tobacco control treaty, FCTC, in 2004.
According to the treaty, India must reduce the area under tobacco cultivation, and target a production volume of 250 million kg of exportable types of tobacco, i.e. Flue-cured Virginia, Burley and Oriental only.
According to the Business Standard, official sources said the “solidarity tobacco tax” has been imposed on 43 countries for not complying with the proposed anti-tobacco measures in 2008-09. (pi)