One-third tax on cigarettes may go to cancer fund

Jaswinder Singh Baidwan

Akhran da mureed
Staff member
With steady rise in the number of cancer patients in the state, the Punjab government is likely to bring in legislation, making it mandatory for one-third of the tax on cigarettes and bidis to be used to provide aid to cancer patients.
The matter is expected to come up for discussion in the Cabinet meeting, scheduled for September 10. The diversion of tax on these two tobacco products would help increase funds for treating poor cancer patients, after this tax is deposited in the Mukhya Mantri Cancer Rahat Kosh. The government provides free treatment for cancer, up to a maximum of Rs1.5 lakh to all patients.
Sources in the Health Department said each year an average of Rs100 crore was collected under the Cancer Relief Fund. The money is so far received as a share from the sale of government property, new industrial projects and contributions from public sector undertakings. However, considering the high incidence of disease in Punjab — the state is believed to have 90 cancer patients per one lakh population — the flow of money under the cancer relief fund is less.
Last year, about 7,900 cancer patients across the state had received grants. The maximum number of patients that received the grant were in Amritsar (939).
It is estimated that cigarettes worth Rs500 crore are sold in the state each year and the tax collected on its sale is approximately Rs120 crore per annum. At present, 30 per cent VAT is imposed on the sale of cigarettes, in addition to 10 per cent surcharge, which makes the total tax on this tobacco product to 33 per cent.
The cabinet meeting will also consider strengthening the Food Commission, established under the National Food Security Act. Though the commission was set up earlier, its members are yet to be appointed. Since the Commission has the important function of advising the state on implementation of the Act, inquire suo motu into violations and function as an appellate authority, the government is keen on having the commission fully functional.
Another important agenda item, allowing exemption on registration charges for sale or transfer of immoveable property to blood relatives or spouse, is also expected to be tabled in the Cabinet meeting.
This was verbally discussed in the Cabinet meeting on May 20 and later announced by the government as having been implemented. However, the Legal Remembrancer had rejected this “verbal” approval sanctioned by the Cabinet and asked for a proper agenda to be tabled.
The Cabinet will also give its approval for holding the Assembly session later this month. It is proposed that the session be held between September 18 and 22. Departmental reports of Vigilance Bureau and Irrigation Department will also be tabled in the Cabinet, besides granting sanction to fill vacancies in Revenue Department and Punjab Human Rights Commission.
 
Top