Latest news with #cigaretteTax
The Independent
23-06-2025
- Health
- The Independent
Call for more taxes on smoking to make up cuts to global aid funding
Larger taxes should be placed on cigarettes around the world, experts have warned – with progress on tackling tobacco use having slowed for the first time in decades according to a new World Health Organisation (WHO) report. In the past decade the number of countries with at least one tobacco control measure in place – whether that's increased taxes, health warnings on packages, bans on advertising or smoking in public places – jumped from roughly 45 to more than 150. But of the seven such tobacco control measures recommended by the WHO, making cigarettes and other tobacco products more expensive through taxes has seen least progress. The WHO put the overall slowing of progress down to disruptions during the Covid-19 pandemic as well as challenges posed by the need to regulate a raft of new products like vapes, which the report said 'threaten[ed] to undo earlier progress made' in the more than 20 years since the WHO Framework Convention on Tobacco Control was agreed . 'Raising prices through taxation is the most effective way to reduce tobacco use,' the WHO report said, adding that this measure had only risen from 13 per cent in 2018 to 15 per cent in 2024. Speaking at the World Conference on Tobacco Control in Dublin, WHO director general Dr Tedros Adhanom Ghebreyesus said: "The greatest gains have been made in developing countries where despite aggressive industry interference, governments and civil society have demonstrated that change for the better is possible. Yet, challenges remain.' 'Raising taxes on tobacco is a proven way to reduce tobacco use while generating revenues to reinvest in health." Dr Tedros added that raising taxes on cigarettes could help make up for cuts to global aid funding – particularly driven by Donald Trump and the US, but also including the UK and a number of other countries – which is expected to hit tobacco control efforts. 'And with [overseas development assistance] falling or the funding level for health falling, the taxes could be used for the gaps that are happening in many countries,' he said as he also called for more research on the health impact of new tobacco and nicotine products like vapes and smokeless tobacco. Andrew Black, who works on the WHO Framework Convention on Tobacco Control said: 'We're facing a really challenging problem especially when it comes to securing the resources that are needed to fight tobacco'. 'What we really need to do is to encourage governments to look domestically for sources of revenue... The very obvious place to look is through tobacco taxation,' he added. A tool developed by Johns Hopkins University in the US found increasing taxes on a pack of cigarettes in Kenya by 75 per cent could raise enough money to cover more than three-quarters of the funds lost to the country through foreign aid cuts. Dr Guy Marks, president of the International Union Against Tuberculosis and Lung Disease, said: 'The reduction in funding for global health is a huge catastrophe for many things. Actually, tobacco control is one area which should be less affected by this than most others [if governments raise tobacco taxes].' 'Why does that not happen? It does not happen, because governments are convinced that they actually gain more revenue for continuing to allow tobacco to be sold," he added. "Why is this the case? Because there are huge political and other interests in countries that support the sale of tobacco.' Global tobacco industry watchdog STOP estimated $1.8 trillion (£1.3tn) US dollars were lost worldwide to tobacco due to the costs of healthcare and lost wages from tobacco-related illness. But some major strides have been made towards controlling tobacco use around the world over the past ten years. More countries have applied graphic health warnings to cigarette packs since 2007 than any other measure, with bans on smoking in public places being the next most common new measure to be introduced. But in many cases countries applying stark health warnings to cigarette packs demand no such thing on smokeless tobacco, which the WHO said could, 'wrongly suggest that some products are harmless'. And while there has been a rise in rules or bans on e-cigarettes, also known as vapes, more than 60 countries have no restrictions on sales of vapes at all. Hazel Cheeseman, the chief executive of UK public health charity Action on Smoking and Health (ASH), said the progress was 'heartening' but that there was much left to be done. 'Tobacco taxes are one of the most effective ways to reduce smoking and can also raise revenue to support health systems. With 134 countries yet to make progress in this area this is an area of significantly untapped potential,' she said. 'Ending the harms from tobacco takes time and I hope the UK government will continue to provide assistance to other countries for the long term helping to secure a planet where no one dies from tobacco related illness.'
News.com.au
04-06-2025
- Business
- News.com.au
‘Crazy': NSW Premier Chris Minns blames tobacco excise for thriving illegal trade
Chris Minns has again slammed the annual tax increase on cigarettes and blamed it for the rise in black market tobacco across the state. The NSW Premier spoke to KIIS radio's Kyle and Jackie O days after he called on the federal government to consider lowering the tobacco excise. He also suggested repurposing police resources from major organised crime networks and domestic violence cases to instead address illegal tobacco sales. 'It's probably not a popular thing for a premier to say because there's been a tax on cigarettes and excise on cigarettes for decades, and I understand that, but they've been radically increased since 2019,' he said on Wednesday. 'So a pack in 2019, 2020, cigarettes had a $16 tax on it. Today it's $28 – a 75 per cent increase. 'This is a crazy thing, that the government used to collect $16bn in revenue and now it's come all the way down to about nine billion. 'It's the only tax in the world, Kyle and Jackie, that they've doubled, and the revenue has declined and all of that money has gone into the black market.' The tax was first introduced in 2010 as an annual 25 per cent increase to reduce smoking rates, and then in 2023 the federal government announced the excise would grow by 5 per cent annually for three years. Mr Minns said most of the illegal tobacco came from overseas, with the explosion of black market cigarettes sending huge amounts of money into the hands of organised crime gangs. The Australian Border Force estimates they control about three-quarters of the trade. 'There's many things I hate about it, but there's two things in particular,' Mr Minns sad. 'Firstly, there's a whole bunch of law-abiding people who go about their lives. They wouldn't break the law in a million years, but they're being dragged into a black market where they go to the store, they can either buy a 17 or $20 packet of illegal cigarettes or a $60 packet of cigarettes. 'It's just a no-brainer for them.' Mr Minns said Health Minister Ryan Park was likely to raise the issue at an upcoming health ministers meeting. 'Every tax and every tax change starts with an idea,' Mr Minns said. 'Every single one of them, someone's saying, 'Look, I don't think this is working, we need to change and so we might as well get the ball rolling here'. 'We have to make a decision because what's happening with these elite illegal tobacco stores is they're pushing out hot bread shops, small businesses, retail stores, they're pushing out restaurants because it's so lucrative they can just take the rent at a higher price.' When asked whether purchasing the illegal tobacco was a crime, Mr Minns said the offence was prior to the sale. 'There's an enormous amount of money now circulating in that black economy that's going to create a whole bunch of other problems,' he said. 'I don't want people to smoke by the way … but we have to be honest about it, realistic about what's going to happen.' Illicit tobacco sales are investigated by NSW Health, with more than 20 compliance officers tasked with managing the tens of thousands of tobacco stores statewide. Cigarette prices in Australia are considered to be one of the highest in the world, according to the World Health Organisation. Taxes account for about three-quarters of the price.
Malay Mail
29-05-2025
- Business
- Malay Mail
Majority of Malaysians support higher cigarette taxes, Merdeka Center survey finds
KUALA LUMPUR, May 29 — Two-thirds of Malaysians support higher cigarette taxes, provided they are implemented in a moderate and predictable manner, according to a survey conducted by the Merdeka Center. The findings revealed that 66 per cent of Malaysians back an increase in cigarette taxes, while 25 per cent oppose the move, and nine per cent remain unsure. The strongest support came from those aged 21 to 30, with over 84 per cent in favour, while opposition to tax hikes was highest among respondents aged 51 to 60. The survey also found significant differences in support based on gender and smoking status. Among women, 72 per cent supported the tax hike, compared to 61 per cent of men. Opposition was higher among men, at 33 per cent, compared to 16 per cent among women. Additionally, 65 per cent of respondents supported implementing a multi-year tax calendar for cigarette excise hikes, allowing for moderate and predictable increases. Among respondents aged 18 to 20, 78 per cent favoured the idea, with the highest support seen in the 21 to 30 age group (80 per cent). Support decreased with age, falling to 53 per cent among those aged 60 and above. Women were more supportive of a multi-year tax calendar, with 66 per cent in favour compared to 64 per cent of men. By smoking status, former smokers were the most supportive, with 70 per cent backing the policy, while current smokers showed the least support at 60 per cent. A majority of Malaysians (79 per cent) also agreed that curbing illicit trade would help reduce crime and increase tax revenue for essential services such as health, education, and infrastructure. Non-Malay Bumiputera and Malay Bumiputera respondents were the most supportive, with 86 per cent and 84 per cent respectively agreeing that addressing illicit trade would yield these benefits. This was followed by Chinese respondents (80 per cent) and Malays (79 per cent). Indian respondents were less convinced, with 62 per cent expressing support. As Malaysia holds the Asean chairmanship this year, 72 per cent of respondents said the country should prioritise excise tax reform and cross-border enforcement to curb smuggling. The survey was conducted by the Merdeka Center between March 27 and April 17, 2025, involving 1,210 Malaysians aged 18 and above across all 14 states, including Sabah and Sarawak. Random stratified sampling was employed based on ethnicity, gender, age, and location, with interviews conducted by phone.
