Rajya Sabha members demand ban on 'misleading' tobacco and liquor advertisements

Several members of the Rajya Sabha urged the government to immediately stop "misleading" advertisements for tobacco, liquor, and related products, citing the alarming number of deaths in India due to associated diseases like cancer.

The discussion occurred during the debate on the Central Excise (Amendment) Bill, 2025, which was introduced in the Upper House after being passed by the Lok Sabha. The bill aims to stabilize taxation on harmful products by allowing the government to levy a higher excise duty on tobacco once the GST compensation cess concludes.

BJP MP Sanjay Seth highlighted the rising use of tobacco products and the resulting increase in cancer, heart, and lung diseases. He cited a World Health Organization (WHO) report indicating that approximately 1.35 million people die annually in India from these diseases.

Seth specifically criticized the practice of surrogate advertising, noting that companies promote harmful products like gutkha or liquor under the guise of advertisements for soda or water bottles. He stated, "Our government should stop such advertisements immediately," and proposed earmarking a percentage of the bill's revenue for cancer research and awareness campaigns.

BSP MP Ramji echoed these demands, calling for an immediate halt to misleading advertisements promoting gutkha in the name of pan masala. He also demanded a total ban on the promotion of such harmful products by film actors and actresses and proposed a mandatory licence for sellers of gutkha and cigarettes, similar to requirements for liquor sales.

The bill, once enacted, will provide the government with the fiscal space to increase the central excise duty on tobacco products after the GST compensation cess, currently levied on all tobacco products, ceases to exist. Current taxation includes a 28% GST plus varied cess rates.

While supporting the bill, AIADMK's M Thambidurai stressed the need for state governments to receive their due share of the revenue, calling the bill a "timely and necessary reform aimed at safeguarding public health" and preventing harmful products from becoming cheaper.

Congress MP Jebi Mather Hisham acknowledged the objective of using a sin tax to control tobacco use through higher prices but suggested the "hidden objective" of the government was to raise resources to cover revenue shortfalls from the GST implementation. Hisham cited domestic estimates showing over one million deaths annually from tobacco use in India, equivalent to 2,500 people daily.

BJP MP and former Union Minister Bhagwat Karad supported the bill, asserting its sole purpose is to stabilize tobacco taxation and strengthen the central government's health policy to ensure a reduction in patients suffering from cancer, heart, and lung diseases.