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Tobacco Tax

Governments To Introduce Super Tax On Tobacco Industry

http://www.huffingtonpost.co.uk/david-green/governments-to-introduce-_b_13966906.html

Cigarettes are the most effective killing machine on the planet. Something radical has to be done to stop 1 in 7 of children becoming smokers.

1 billion people smoke cigarettes which in time will kill half of its users amounting to over 6 million people each year. That’s equivalent to wiping out the population of Britain in a decade.

Meanwhile, the world leading tobacco companies boast an income of $315 billion and the top 6 companies make profits of $44bn.

Tobacco deaths account for 20% of all cancer cases. 14 million people are diagnosed with cancer each year. And before people buy into the highly addictive E- cigarettes as the ‘healthy’ option, according to the World Cancer Report, they contain 3,000 chemicals and 28 carcinogens with similar nasties as cigarettes.

Just as 1,000 leading doctors are calling on Theresa May to create a brave new policy on smoking, a bold clear thinking leader could easily introduce a Super Tax forcing tobacco companies to set aside monies to build and run standalone cancer hospitals exclusively for the use of its loyal customers that they are killing. This would reduce substantial pressure on hospitals and release monies to care for people who do not choose habits that make them ill.

There are enough people sadly affected by illness not of their own making, so let’s eradicate the illnesses that are of our making and penalise the industries that make money out of suffering.

Every problem can be solved if we deal with the cause. It’s all about the cause but who wants to deal with the cause?

Obama just announced a bill to spend $6.3 billion to fight cancer over the next decade. Very admirable.

BUT how stupid are we?

Over 2.5 million of cancer deaths per year are avoidable. Main causes being SMOKING, OVEREATING, ALCOHOL ABUSE.

It’s a sad fact of life that we are safest and cause less harm to ourselves and others when we are asleep!

Just as governments found the banks to be sitting ducks to fine handsomely for their misdemeanours, there is far higher justification to target the tobacco companies to save lives, save tax-payers money, save grief, save pain and save suffering.

Our addictions and bad habits cause the majority of our problems but only when we accept this brutal naked truth do we realise we have the power to change ourselves rather than pollute ourselves. Life is tough enough without making ourselves ill.

Many amazing people help and inspire us to overcome our addictions, yet governments are slow to do what is right to implement radical and aggressive change. It should be mandatory for school children to visit cancer wards from a young age to see the effects of cigarette and alcohol abuse as part of the curriculum as well as drug addiction facilities to witness how drugs can destroy people.

I have recently been staying in Manhattan Beach, a smoke free city in California. Here you can’t smoke outside anywhere. Someone made it happen. Other cities and countries could easily follow.

On Christmas Day, the legendary George Michael passed away. On the same day, a brave friend of mine Murray Goldstein also left us. Murray had an important message for the smokers in the world:

“My father was a heavy smoker all his life. He lived to 90 with the occasional cough. Had I known then that he was the exception to the rule I probably would never have become addicted. But in those days, there was no information available that told you smoking was bad for the health.

I smoked a few packets a day from the age of 16 and had a heart attack in my 30s because of smoking and poor diet. I carried on smoking which ruined my chance of a healthy life.

The last 12 years have been a form of purgatory as I have developed COPD – chronic obstructive pulmonary disease – which is irreversible, fighting for every breath. My world has revolved around my illness, affecting my near and dear ones especially my wife who has made a great sacrifice to care for me. During the last few years I have needed 24 hour care and the emergency services have revived me several times.

My advice to present day smokers – GIVE IT UP BEFORE YOU GET ILL – it’s not as hard as you think. Don’t wait until the first heart attack or the news that you have cancer. Please learn from my mistakes. I stopped 8 years ago and have never had any cravings and I was a forty-a-day man for years!”

Congratulations to all smokers who finally kick the habit and take Murray’s advice.

Meanwhile, our leaders would do well to reflect on Gandhi’s wise words:

“The difference between what we do and what we are capable of doing would solve most of the world’s problems.

Tax hike tipped to result in more smokers quitting

http://www.nzherald.co.nz/northern-advocate/news/article.cfm?c_id=1503450&objectid=11775187

More Northland smokers are expected to give up after the latest 10 per cent hike on tobacco products kicked in yesterday. Northland health officials hope the latest 10 per cent rise in the cost of tobacco products will see more smokers try to kick the habit and say there is help for those who want to quit.

The Government’s latest tax hike on tobacco kicked in yesterday, with more scheduled on January 1 on each of the next three years.

Bridget Rowse, Northland DHB Smokefree Advisor, is urging smokers to beat the price increase and consider quitting this summer.

“Every year thousands of Kiwis escape their working lives for a few weeks for a summer holiday – epitomised by journeys to the beach, families and feasting, and of course the tradition of New Year’s resolutions,” Ms Rowse said.

“We’re encouraging everyone to make giving up smoking their resolution this New Year. It’s a great opportunity to begin that journey to a smokefree life.”

She said the aim was to put a stop to whanau dying needlessly from smoking-related diseases and while the cost of smoking has gone up, the cost of quitting hasn’t. An eight-week supply of nicotine patches, gum and lozenges costs as little as $5. By using patches, gum or lozenges smokers will double their chance of quitting for good.

Nicotine patches, gum and lozenges are safe, and contain only a minimal amount of nicotine, and come packaged without any of the 4000 chemicals – many of which are harmful – found in cigarettes.

“We know that most smokers would love to quit. Increasing tobacco tax is one of the best ways to reduce smoking.”

Previous tobacco tax increases have reduced tobacco consumption per capita by around a quarter and prompted thousands of smokers to quit.

“Some people may feel targeted, but the tax hikes send a clear and consistent message that, in the long-run, New Zealand was committed to drastically bringing down smoking rates,” Ms Rowse said.

Tax hikes are part of a number of measures designed to move New Zealand towards the Government’s goal of a smoke-free New Zealand by 2025 – reducing smoking prevalence to less than 5 per cent of the total population.

More than 19,986 people in Northland aged 15-years and over smoke regularly – 19.1 per cent – compared to 15 per cent nationally.

To get help to stop smoking, talk to your doctor, midwife, Maori health provider or call Quitline on 0800 778 778.

Tobacco tax increase comes in today

Smoking gets more expensive from today: the tax on tobacco is going up by 10 percent.

http://www.radionz.co.nz/news/national/321568/tobacco-tax-increase-comes-in-today

The cost of a packet of cigarettes is currently about NZ$20.

It’s the first of four consecutive 10 percent rises coming into force on 1 January each year until 2020.

Roughly 15 percent of adult New Zealanders, or 550,000 people, are estimated to smoke daily, and smoking-related illnesses kill up to 5000 a year.

The cost of a packet of cigarettes is currently about NZ$20.

Quitline chief executive Andrew Slater said it was likely more people would stop smoking because of the price rise.

“Money and financial reasons is one of a number of reasons that people quit, and so we’re seeing an increase that the government announced last year that comes into effect today. And so that certainly motivates people to pick up the phone and start their quit-smoking journey.”

Mr Slater said he expected the number of calls to Quitline to double throughout this month and next.

Meanwhile, Quitline’s lastest freephone help service statistics show that nearly half of the people who gave up smoking in 2016 did so to improve their health.

Quitline says 45 percent of those who used its services to quit wanted to better their health, while 13 percent said they just did it for themselves and another 11 percent quit because it was too expensive.

Mr Slater said the proportion who quit for family reasons jumped to 9 percent.

“We’re seeing family, whanau and role-modelling for children increasing as a reason for people to quit and also just I think having children provides a great prompt for people to think about their health and make sure that they’re going to be healthy to see their children grow up.”

Over a third of pregnant smokers who contacted Quitline cited the need to be a role model for their children as the main motivation to quit, with improving health coming in second.

The Māori Party says stopping Māori women from smoking is on the government’s work programme for the year ahead.

Māori Party co-leader Marama Fox said the goal is that by 2025 fewer than 5 percent of people will be smokers.

“There are many parts of New Zealand that have already reached that goal, one of the biggest areas that we need to look at though is Māori smoking, Māori women smoking and looking at the trial introduction of e-cigarettes and vaping as forms of cessation.”

Ms Fox said a change to the tobacco laws was being considered, to formally include e-cigarettes as part of quit-smoking moves.

300 smokers call it quits after tobacco tax hike

Smoking cigarettes and tobacco just got a lot more expensive with a 10% tax increase coming into force this morning.

https://www.maoritelevision.com/news/regional/300-smokers-call-it-quits-after-tobacco-tax-hike

That means, the average cost for a packet of cigarettes is around NZ$25. (HK$ 134.5)

While some Smokefree agencies are supportive they say government measures don’t go far enough.

Andrew Slater, CEO Quitline says, “So, so far today we’ve had over 100 people call us by lunchtime looking to enrol and get support for quitting smoking. We’ll expect to see that sort of hit around 300 people by the end of today.” The Māori tobacco advocacy service says while the law change seems unfair to Māori families it is for their benefit. Zoe Hawke, General Manager – Tobacco Advocacy Service, Hāpai Te Hauora says, “Having your health will be more financially beneficial in the end. You don’t want to be mauiui, you don’t want to end up in hospital with your whanau suffering and being sad that you’re sick.” But Hāpai Te Hauora claims the tax increase doesn’t go far enough. They’re pushing for a 20 percent increase.

Hawke says, “When it’s 20 percent, it may be at odd times during the year so people aren’t preparing for it then the shock of it helps people then to start planning for being smokefree.” But, the rising cost of tobacco isn’t the key reason why many are opting to quit the habit. Slater says, “What we know from our research over the last 12 months is around 45% of people actually quit smoking for their health followed by family and cost was the third reason.” Berdie Milner, Quitline Advisor says, “It deteriorates your health as well as the health of your family. It’s time to fix it and we can help you.”

The 10 percent tax increase will apply each year until 2020 in order to fulfil the government’s goal of a smokefree New Zealand.

Worldwide Cigarette Price per pack (Marlboro ) 2016

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Monitoring tobacco use and prevention policies

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Oman health: Hike cigarette tax to cut down on smoking, says official

MUSCAT: Cigarettes prices should be doubled in Oman so they remain out of reach for most people, a senior official at the Ministry of Health said.

http://timesofoman.com/article/99552/Oman/Health/Oman-health:-Hike-cigarette-tax-to-cut-down-on-smoking-says-official

“A pack of cigarettes, which now costs OMR1, should be made OMR2, or more, so that people will think twice before buying them. And from the extra tax money we can build a hospital every year,” said Dr Jawad Al Lawati, senior consultant and rapporteur for the National Tobacco Control Committee at the Ministry of Health (MoH), speaking to Times of Oman.

Talking about his wishes for 2017, Dr Al Lawati said that tobacco taxes should be increased so cigarettes remain out of reach for most people.

About 14 per cent of Oman’s male population smokes, while 0.5 per cent of women smoke.

In September, Oman raised the tax on tobacco products from 20 per cent to 40 per cent, a 100 per cent increase aimed at reducing smoking in the Sultanate.

The cost for cigarettes rose from OMR1 for a pack to OMR1.2. The tax on tobacco products was raised for the first time in 17 years.

The higher tax on tobacco was announced after Bahrain raised its tax in January and Saudi Arabia in March 2016. Citing records, officials also said 60 per cent of all deaths in Oman are caused by non-communicable diseases, such as cardio-vascular conditions, including coronary heart disease and cancers.

Earlier, Majlis Al Shura members had requested the government to carry out a proposal prepared by the Ministry of Health to impose taxes on tobacco. “We have to raise prices so that they remain beyond the reach of children,” one of them said, noting that countries that had previously raised taxes on tobacco have been able to significantly reduce the impact of tobacco use.

“We hope that the price of a pack [of cigarettes] will be higher, and rise to a level that can help reduce consumption,” he said. The comparative prices of a pack of Marlboro Red cigarettes are: Saudi Arabia –SAR12, Oman –OMR1.2, Bahrain–BHD1.3, Qatar – QAR10, UAE – AED10, Kuwait – KWD0.75 – Source: Cost of Living

Saudi Arabia to impose 100 percent value added tax on tobacco

http://english.alarabiya.net/en/News/gulf/2016/12/29/Saudi-Arabia-to-impose-100-percent-value-added-tax-on-tobacco.html

Saudi Arabia’s decision to impose 100 percent value added tax (VAT) on tobacco and its products will bring down the number of smokers in the country, said Dr. Mohammed Yamani, chairman of the board of directors of Naqa, an NGO that helps smokers kick the habit.

“The move is a positive and important step toward combating the unhealthy habit,” he told Okaz/Saudi Gazette.

Saudi Arabia has one of the world’s highest rates of smokers as 14 percent of its teenagers and seven percent of its women smoke.

“Smoking habit among young Saudis aged 18 and below has increased with their rate reaching 13 to 14 percent. The figure is close to the study conducted by the World Health Organization,” Yamani said.

He said the VAT on tobacco and its products would be imposed in the second quarter of 2017 as part of the government’s efforts to achieve fiscal balance.

“Cigarette prices in the Kingdom and other Gulf states are still low compared to other countries,” he pointed out.

Yamani, who has been working to combat smoking during the past several years, emphasized the need to bring price of a cigarette packet to SR35-SR40. “VAT will be imposed on import cost. So the price of a cigarette packet will not reach double of the present price,” he explained.

He wanted the Kingdom to increase taxes on cigarettes to bring prices to international level. He said low prices have contributed to increasing the number of smokers in the Gulf region, especially among teenagers and people having low income.

“The increase in cigarette price will not prevent people from smoking but bring down the number of smokers,” Yamani said citing studies conducted in advanced countries.
He said the executive bylaw for preventing smoking in public places will be published shortly.

“The Cabinet has already passed the law and the health minister has told us two weeks ago that the law will be implemented within a few days,” he added.

The Kingdom has widened the scope of public places where smoking is not allowed and it includes prayer places, schools and restaurants. It’s the longest article of the law.

He said VAT would be imposed on harmful materials beginning from the second quarter of next year. The Saudi finance minister has already signed a resolution taken by the GCC Supreme Council to impose 50 percent tax on beverages and 100 percent tax on tobacco and its products.

Expat fee, subsidy cuts: What’s in Saudi fiscal balance document

An “excise tax on harmful products” — including a 50 per cent tax on soft drinks and a 100 per cent tax on tobacco and energy drinks — will be implemented from the second quarter of 2017. — Bloomberg News

http://timesofoman.com/article/99250/Business/Expat-fee-subsidy-cuts:-What’s-in-Saudi-fiscal-balance-document

Riyadh: Saudi Arabia followed a historic budget announcement last week with an 84-page document outlining how the Arab world’s largest economy plans to balance its budget by 2020. The document includes plans to curtail capital spending, raise new revenue and stimulate the private sector.

Following are highlights of what caught our attention:

Capital expenditure:

Authorities reviewed projects with a total cost of SR490 billion ($131 billion) under the five civilian ministries with the highest capital spending. Of the total, SR270 billion had already been spent and the revision identified potential savings of SR100 billion.

The next phase will see the government examining capital spending at 13 entities with a total cost of about SR1.18 trillion. To control the costs of projects, the government is creating a strategic procurement unit.

Subsidy reforms:

Additional subsidy cuts will involve a steady change in energy and water prices from 2017 to 2020. This is expected to help the kingdom save SR209 billion annually by 2020.

The government is looking to increase prices of local retail fuel by linking them to benchmark oil prices or to the average of gasoline and diesel fuel prices on the international market. Prices will change according to fluctuations in the international market and they will be revised periodically.

In 2016, a reduction in fuel and electricity subsidies saved the state between SR27 and SR29 billion despite a halt to a planned water subsidy reduction. The kingdom sees gross saving from the reforms reaching SR59 billion in 2017, SR107 billion in 2018 and SR142 billion in 2019, the document says.

The partial reduction of subsidies has also helped slow the growth in energy consumption to 1.7 per cent in the first half of 2016 from 3.5 per cent in the same period a year earlier.

Taxes and fees:

The government plans to introduce a slew of taxes and fees, raising additional revenue of SR42 billion in 2017 and SR152 billion by 2020. In 2017, Saudi Arabia will introduce an unprecedented “expat levy” on foreign workers with dependents.

The fee will start at SR100 per month in July and rise each year to reach SR400 a month in July 2020, according to the document. It is unclear whether the fee will be assessed for each dependent.

The government will also raise the monthly fees paid by employers that have more foreign workers than Saudis. It will no longer waive the fee for businesses have fewer expats than nationals, instead charging them a “discounted rate.”

An “excise tax on harmful products” — including a 50 per cent tax on soft drinks and a 100 per cent tax on tobacco and energy drinks — will be implemented from the second quarter of 2017. A 5 per cent value-added tax will be imposed in the first quarter of 2018. The government is studying taxes on sugary drinks and snacks.

Authorities will also impose “luxury tariffs” from the first quarter of 2018, the document says, without elaboration.

Private-sector stimulus package:

In the document, authorities acknowledge that confidence in the economy has declined, private sector employment has dropped and real consumption per capita is falling. To counter that, officials on Thursday announced a stimulus package for the private sector worth SR200 billion ($53.3 billion) until 2020.

The fund will provide “attractive investment capital to support the private sector,” the document says. It will be directed to raising the efficiency of industries with high energy and water usage. The package may be extended beyond 2020.

There are also plans to ease rules governing foreign ownership of companies and land, increase the mobility of foreign workers and deregulate industries like tourism and entertainment to reduce barriers to growth, the document says.

Outlook for the economy, decision making:

Overall, the newly-announced measures will increase private investment, consumption and growth over the next four years, the document predicts. The government foresees a slight rise in unemployment in 2018 followed by declines in 2019 and 2020.

Inflation is seen accelerating each year as new measures are introduced.

The kingdom pledges that there will be “no additional financial impositions’ by the government on its citizens or private sector” beyond what’s already mentioned in this document.

There will be no further removal of subsidies There will be no income tax imposed on citizens There will be no corporate income tax There will be a grace period between policy announcements and action There will be no delay in contractor payments. The government will pay within 60 days of “due dates.” There will be no retroactive decision-making.

Hiking tobacco excise alone won’t reduce smoking: Finance Ministry

The Finance Ministry doubts that the increase in tobacco excise can reduce the prevalence of smoking in the country, arguing that the regulation needs to be combined with non-fiscal policy to make it more effective.

http://www.thejakartapost.com/news/2016/12/20/hiking-tobacco-excise-alone-wont-reduce-smoking-finance-ministry.html

Suahasil Nazara, the ministry’s fiscal policy office (BKF) head, said besides gradually increasing excise tax, educating people about the negative impact of smoking and preventing youths from purchasing tobacco products also were equally important.

“I don’t believe that increasing excise tax will reduce the prevalence of smoking. We need to use a combination of fiscal and non-fiscal policies,” he said in a discussion on cigarettes at Hotel Borobudur in Central Jakarta.

In eight years, the number of tobacco factories had gone down from 4,669 in 2007 to 714 in 2015, which reflected the recent decline in cigarette production. The fact implied that production had decreased in line with market forces, he said.

The government’s argument was slammed by Hasbullah Thabrany, a professor of public health at the University of Indonesia’s School of Public Health, who said the reason behind the declining number of tobacco companies was because many small companies—mostly hand-rolled cigarettes—were unable to compete with big firms.

The Finance Ministry announced in October that it had issued a regulation to increase excise taxes by an average of 10.54 percent next year for several types of cigarettes. The price increase was lower than the target set by the government this year of 11.33 percent. (win/evi)