Tax Boost on Cigarettes Won’t Reduce Smoking Rate

January 20th, 2015 00:00

British American Tobacco Zimbabwe Limited has pushed government authorities all over Southern Africa to thoroughly look into the unintentional effects of raised taxes on smoking products with the objective of decreasing tobacco use.

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In a affirmation dedicated to the Word No Tobacco Day, BAT Zimbabwe stated it does not consider that a boost in taxes on cigarettes would result in reduced use, in fact, smokers may keep on to search for lower priced products. “What is surprising about this case is that the call for raised taxation on smoking products comes from within a context of currently huge tobacco taxes all over Southern Africa, and an economic condition in which the extra income of consumer’s continues to be extended,” BAT added. “Frequently, with a boost in taxes on smoking products, a hasty impulse for buyers under extreme economic pressure is to automatically obtain cheaper cigarette brands so as to save money.”
BAT stated the company had noticed a stunning raise in the prevalence of illicit trade in states with larger excise rates on smoking products, a lot of whom are striving to reduce the problem in spite of coordinated initiatives from law enforcement government bodies.

Close to 660 billion cigarettes per year are operating illegally. “BAT Zimbabwe prompts authorities wanting to decrease tobacco use to expand the scope of their considerations above boosts in tax. Public health goals are not able to be the single element of consideration when deciding fiscal policy,” BAT Zimbabwe explained. “The unintended implications as an outcome of boosts in tax on smoking products could, in reality, affect the accomplishment of these public health goals.”

The World Health Organization reports that at the moment there are about one billion smokers throughout the globe and that already by 2050 this number could boost to approximately 2.2billion. While acknowledge the challenges related to tobacco use, BAT Zimbabwe stated a logical tactic regarding tobacco taxation that considers all the possible unintended outcomes like the illicit trade in smoking products.

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