Tobacco tax

baccy valuate good for health, politics finances Tobacco use kills over 5 million throng each year and is the largest sensation pr horizontaltable cause of premature death. l Tobacco is very costly to society through mellow costs to treat tobacco plant-induced disease or through loss of productivity as a firmness of the premature deaths. But governments have a tool to combat the costs of tobacco use tobacco taxation.Higher tobacco prices decrease consumption and encourage people to quit Increasing the price of tobacco products Is the undivided most effective way to reduce consumption-2 Ralslng prices discourages uptake of tobacco se by young people and motivates people to quit tobacco use, while raising government revenues. 3 Numerous studies in heights income countries have shown that a 10% increase in cigarette price decreases consumption by active 4%. 4 Available data indicate that consumption in low and middle income countries is even more responsive to price.For exam ple, the estimated decreases would be about 5. 5% in China, 5. 2% in Mexico and 5. 4% in South Africa. 5,6,7 For tobacco products new(prenominal) than manufactured cigarettes, studies are comparatively rare, although similar effects have been found. 8 Price (SA rand) Packs 100 25 Real Cigarette prices (2008 base) Packs sold per capita 15 10 5 20 1980 1985 1990 1995 2000 2005 2009 Year Inflation-adjusted cigarette prices and cigarette consumption, South Africa, 1980-2009 Higher tobacco prices save lives Decreasing consumption would turn in into lives saved.The World Bank has estimated that tax increases to raise the price of cigarettes by 10% would 00 Cut the number of smokers in the world by 42 million 38 million of them in low to middle income countries 00 redeem 10 million lives 9 million of them in low to middle income countries. 9 PHOTO WBB self-assertion WWW. NCDALLIANCE. ORG How many lives could tobacco tax increases save? Recent economic analyses for countries with larg e numbers of smokers found that in China in Russia Increasing tax from 40% to 68% of the retail price would Increasing tax from 37% to 70% Increasing tax from 33% to 70% OOGene prize IJS$16. one thousand thousand a year in additional tax revenue OOGenerate IJS$6. 5 billion a year in OOGenerate IJS$4. 9 billion a year in OOHelp 54. 6 million smokers to quit OOHelp 10 million smokers to quit OOHelp 5. 4 million smokers to quit oosave 13. 7 million lives12 OOSave 3. 5 million lives OOSave 1. 3 million lives14 Tobacco and mendicancy Those living on lower incomes are more likely to smoke, and constitution makers are sometimes concern that increasing tobacco tax will penalise people who are already living in reduced circumstances.But it is important to note that poorer smokers are also the most price sensitive in other words, they are the most likely to quit or reduce their consumption of tobacco when taxes are increased. This has been sustain in multiple studies. For example, when tobacco excise was increased in South Africa over several long time in the mid to late 1990s, the largest reductions in smoking prevalence were seen among young people and low-income earners. When smokers quit, their families advance in two ways through improved health and through improved finances money antecedently spent on tobacco products can be spent on food, education and other necessities. If policy makers are concerned about the economic impact of tobacco tax increases on low-income smokers who do not reduce their consumption, they can invest part of the added tobacco tax revenue in social spending. 13 In addition to savings to the public sector, business can also benefit from a better workforce, with lower absenteeism and fewer losses of skilled workers through early retirement due to illness or early death.A cost-benefit analysis in the I-JK showed that a 5% tobacco tax increase over the rate of inflation would increase government tax revenues by over IJS$814 million a year and event in wider economic benefits of over $440 million per year in the first five years of the policy. 18 Tobacco use is the one risk factor common to the main groups of NCDs. Accelerated implementation of the FCTC is an inseparable way to tackle NCDs and save lives. 1 World Health Organization (2009) WHO report on the planetary tobacco epidemic 2008.Geneva World Health Organization. 2 World Health Organization (2004) Building blocks for tobacco control a handbook. Geneva World Health Organization. 3 Jha P Chaloupka F. (1999) Curbing the epidemic governments and the economic science of tobacco control. Washington, DC World Bank. 4 World Health Organization (2010) WHO technical manual on tobacco tax administration. Geneva World Health Organization. 5 Hu T-w, Mao Z, Shi J, Chen W (2008) Tobacco taxation and its potential impact in China.Paris International Union Against Tuberculosis and Lung Disease. Tobacco tax increases benefit the economy Governments benefit directly fr om tobacco tax increases. Increased revenue can pay for tobacco control interventions, combating infectious isease or other priority national programmes. Countries with efficient tax systems have benefitted from stiff tax increases.