tobacco taxation tagged posts

Taxes Cause Smuggling in the US

March 21, 2014 Taxation in USA

Cigarette smugglingWASHINGTON D.C. – Increases in smuggling of cigarettes in the USA can be directly linked to increases in taxes.

Hikes to the rates of taxes and duties applied to the sale of cigarettes in the USA have led to increased levels of smuggling, with some states now seeing as much as half of all cigarettes being brought in illegally, according to a new report released on March 19th by the US think tank Tax Foundation.

The researchers of the Tax Foundation found that the cost of cigarettes faced by consumers is one of major factors behind the increase in the levels of smuggling, and such illicit activity is most likely to occur when a state government enacts a very sharp increase to the rates of taxes applied to cigarettes.

The consumption of illegitimately obtained cigarettes is most common in th...

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Smoking Taxes Will Save Lives

January 6, 2014 International Tax Cooperation

LONDON – Significantly hiking the taxes applied to cigarettes and other tobacco products would save millions of lives within a matter of years.

Last week the result of new research were published in the New England Journal of Medicine, showing that nearly one third of all smokers in the world could be encouraged to drop the habit if the average rate of excise tax on tobacco was tripled.

It is estimated that the significant reduction in the number of smokers will prevent as many as 200 million premature deaths around the world within this century.

In the USA and Canada alone, the tax hike could prevent as many as 200 000 pre-mature deaths each year.

The authors of the report noted that tripling the rate of excise tax on cigarettes would, in some cases, more than double the retail price o...

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Time to Rethink Tobacco Taxes

September 6, 2013 Taxation in Ireland

No smokingDUBLIN – Tobacco products are under fire in Ireland, with calls being raised for a radical overhaul of how cigarettes are taxed in the country.

On September 5th the Irish Cancer Society issued a statement calling for the government to implement new tax measures to simultaneously curb the instance of smoking and to reduce the profit levels of tobacco businesses.

The Society is pushing for the government to raise the tax rate on tobacco products by EUR 0.60, and institute a mandatory annual tax hike equivalent to 5 percent above the national inflation level.

As an additional measure, the Society also suggested a complete overhaul of the regulations for tobacco sales, saying that the government needs to instate a maximum price for cigarettes, with the level being set at less than current pric...

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Cigarette Taxes Slow Down Binge Drinkers

August 13, 2013 Taxation in USA

Binge DrinkingNEW HAVEN – New research has illustrated the strong link between alcohol use and smoking, highlighting the effect of cigarette taxes on alcohol consumption.

On August 12th the results of a new study completed by researchers from the Yale School of Medicine were released in the medical journal Alcoholism: Clinical and Experimental Research, showing that taxes on cigarettes and tobacco products not only reduce the instance of smoking but also cut down the frequency and severity of binge drinking.

The new research is based on surveys conducted in 2001 and 2004 on nearly 21 500 daily smokers across 46 states in the USA.

According to the research, in the states where tobacco tax was increased, on average, smokers consumed alcohol 25 percent less often and consumed 10 percent less alcohol in one...

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Illegal Cigarettes in Europe Dwindle Tax Revenues

April 22, 2013 Taxation in EU

Taxes on CigarettesNEW YORK – Over the last three years the EU has lost out on more than EUR 30 billion in tax revenues, as more and more taxpayers choose to purchase cigarettes of the black market.

The consumption of counterfeit and contraband cigarettes in Europe continued to rise for the sixth year in a row, leading to billions in lost tax revenues, according to a report commissioned by the international cigarette manufacturer Philip Morris International.

According to information in the report, in 2012 nearly 65.5 billion illegal cigarettes were purchased in Europe, accounting for over 11.1 percent of all cigarettes consumed in Europe, compared to approximately 10.4 percent in 2011.

Cumulatively the EU lost an estimated EUR 12...

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