Tobacco use is a major cause of preventable deaths worldwide, with nearly one million tobacco-related deaths occurring in India each year. Many of these deaths in India are linked to bidis—small hand-rolled cigarettes made from tobacco and tendu leaves— the most smoked tobacco product in the country. Bidi smoking has a major impact on India’s health and economy, especially among low-income communities. Despite their harmful effects, bidis are taxed at low rates, and small producers get tax exemptions that weaken tax policies.
One Health Trust researchers are seeking to understand how increasing bidi taxes and removing producer tax exemptions could help improve public health and generate economic benefits.
This research provides strong evidence for bidi tax reforms. Aligning bidi taxation with cigarette tax rates, closing loopholes, and strengthening enforcement could help India meet World Health Organization-recommended tax levels and achieve broader tobacco control goals.
