Cigarettes Current Affairs - 2020

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National Calamity Contingent Duty increased in Budget-Concerns of Tobacco institute

The Budget 2020-21 that was presented by the Finance Minister Nirmala Sitaraman increased the National Calamity Contingent Duty.  The imposed duty is expected to witness price rise of 7% in the sales of cigarettes.

What is NCCD?

The NCCD is tax imposed on pan masala, cigarettes, cellular phones and other tobacco products. It was introduced under Finance Act, 2001


The Tobacco Institute of India believes that increasing the NCCD will incentivize illegal cigarette trading in the country. Currently, the illegal cigarettes account to one-fourth of the Indian Cigarette market.

National Calamity contingent Fund (NCCF)

The Fund was proposed by the 11th Finance Commission. It has a core corpus of Rs 500 crores. The fund is replenished through National Calamity Contingent Duty. Since April 2010, the NCCF has been merged with the National Disaster Response Fund.

The assistance from the NCCF is only for immediate relief and cannot be used for restoration of damaged infrastructure.

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WHO: India off-track to meet tobacco target

The World Health Organization on December 19, 2019, released its report on Global Tobacco use trends. According to the report, number of males using tobacco has declined globally for the first time. The report says that the anti-smoking campaigns all over the world is the main reason for the number of tobacco users to reduce.

Highlights: World

Globally the number of tobacco users have declined by 60 million people. In 2000, the overall tobacco users were 1.397 billion and it has come down to 1.337 billion in 2018. The report says despite the reduction in numbers, the global target set by governments to reduce the use of tobacco by 30% by 2025 remains off track. So far only 32 countries are on track to reach the target.

Around 43 million children (of age 13-15) are using tobacco in 2018. The number of women using tobacco was 244 million. Of all the regions of the world, South East Asian region has the highest use of tobacco. The only region on track to achieve the target is the Americas.

Highlights: India

According to the report, India is off track to achieve the target of 30% reduction by 2025 as compared to 2010 level. Along with India 163 countries are off the track.

However, the consumption rate in India is going down by 21.6% as compared to 2010. The current users of smokeless form of tobacco in India is estimated to be 257,020,000.

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