BIZCHINA> Review & Analysis
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High tax won't cut number of smokers
(China Daily)
Updated: 2009-06-24 07:55 Raising tobacco tax alone won't help people give up smoking, says an article in Qilu Evening Post. Excerpt: The tax authorities and financial regulators recently raised the taxes on tobacco products. "Raising the tax rate on cigarettes will not only increase government revenue, but also save the lives of millions of people," said Li Ling, professor in Peking University. Many anti-smoking organizations, too, believe the tax increase can reduce the harms caused by cigarettes.
In fact, some experts say raising taxes on cigarettes will only force smokers to choose between high-priced and cheaper brands. Not only raising taxes may not reduce the number of smokers, but also it can boost the growth of the tobacco industry. So the government would do better to set aside part of the increased taxes for anti-smoking campaigns. But more importantly, the government should gradually reduce its dependence on taxes from the tobacco industry. We have to understand that higher taxes will compel cigarette companies to sell more of their products and cause more harm to the people. Smoking kills a great number of people every year and leaves a greater number suffering from diseases, and the government has to spend huge amounts of money for their treatment. (For more biz stories, please visit Industries)
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