Discussion

Economics

Taxation on Tobacco Discussion

When the World Health Organization argued for increased taxation on tobacco, this was a normative statement. I certainly understand that the urge to raise taxes on tobacco is a part of a strategy to incite smoking cessation on a massive scale. There are startling statistics published by various reputable sources every year that describe the massive number of deaths directly and indirectly related to smoking cigarettes. There are staggering statistics about the amount of money and resources dedicated to smoking related health problems in the long and short-term. Furthermore, there is a lot of information about the revenue generated by the tobacco industry annually and overall. All of this information together is what makes me hesitate to agree. I would agree with this initiative if it were a part of a multi-pronged strategy for smoking cessation around the world. Just to suggest higher taxes on tobacco is ineffective and incomplete, though I appreciate the implied intentions to get people to stop smoking and improve their health.

2. Other ways that are available to societies to reduce cigarette consumption would be the legalization of marijuana, and to remove the harmful chemicals from cigarettes. Tobacco is a plant that has moderate addictive properties, but cigarettes do not contain only tobacco, often extremely dangerous or fatal ingredients that increase the addictive properties as well as increase the nefarious side effects upon health. People often smoke cigarettes to relax; societies could make greater efforts to reduce the stress in their cultures and provide widespread free ways to elevate stress so that people have more alternatives to stress reduction rather than smoking. Societies could additionally more closely monitor representations of smoking in the media, as people are influenced directly and unconsciously by the content of the images they consume.

3. Third world countries are more likely to rely more heavily upon excise taxes on gasoline, tobacco, and alcohol because those are products that sell very well around the world. These are also products that are in a number of cases, particularly tobacco, that are cheaper than essential items such as water or food. Taxes on tobacco help poor countries who would rely on the taxes more wealthy and more reliant upon tobacco.

4. People in lower and middle income countries are more likely to react to taxation on tobacco because for the consumers of that product in those countries, they will have less income for food and shelter for example. People in wealthier countries can afford the increase; they may hardly notice the increase and if it bothers them on principle, for example, they can afford other alternatives just as easily.