New Delhi: Imposition of a special Covid-19 cess on tobacco products can raise additional tax revenue that can contribute in funding the Covid-19 stimulus package, public health groups and economists have said reaching out to the GST Council, which is slated to meet on 12 June.The groups have said that such a cess on cigarettes, beedis and smokeless tobacco products can provide revenue of ₹49,740 crore, which could alone cover about 29% of the stimulus package.
The proposal is in line with an alcohol cess imposed by some government during the lockdown to earn more revenue.Based on studies conducted in several countries, smokers and smokeless tobacco users may be at greater risk for severe illness when confronted with Covid-19 since it.