Non-Smoke Tobacco Consumption in India: A Cost-Benefit Analysis

This study evaluates the economic and social impacts of non-smoke tobacco consumption in India and compares them with the tax revenue generated by the government from this industry. Non-smoke tobacco products, such as chewing tobacco and pan masala, are associated with various health and environmental problems, such as oral cancer and littering. The study uses the concept of externalities to analyse the costs and benefits of non-smoke tobacco consumption for the society and the government. Based on available data and assumptions, the study estimates the expenditure on oral cancer treatment and cleanliness, and the revenue from direct and indirect taxes on non-smoke tobacco products. The study finds that the government collects more revenue than it spends on mitigating the negative externalities of non-smoke tobacco consumption, but the social costs are still significant. The study suggests that the government should implement more effective tobacco taxation and control policies to reduce the consumption and harm of non-smoke tobacco products.