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          BIZCHINA> Review & Analysis
          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.

          Related readings:
           Cigarette tax increased to cut smoking
           To raise revenue, China turns to tobacco tax

          But some people differ. They say the purpose of raising taxes has been clearly stated in the government's document - "to properly increase the financial revenue and perfect the consumption taxes on cigarettes". The document says nothing about reducing the number of smokers in the country, they claim, and if people think it to be an anti-smoking move they will soon be disillusioned.

          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.


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