Tax cuts in 1990s increased smoking
Jump to full article: National Post (ca), 2002-08-01
Author: Steven Edwards / National Post
Intro: Anti-smoking delegates attending a United Nations conference on cigarette smuggling are presenting the Liberal government's 1990s policy of reducing tobacco taxes to thwart smugglers as a case study in what not to do when combatting the illicit cigarette trade.
The policy, representatives of nearly 150 countries are hearing, increased the number of smokers and reduced government revenues.
The Liberal government is now engaged in an aggressive program to reduce the number of smokers. Cigarettes are again heavily taxed and legislation requires tobacco products to carry graphic warning labels.
But to price smugglers out of the market in 1994, the government slashed taxes that had been placed on cigarettes in the 1980s and early 1990s.
"The United Kingdom took a different approach," Dr. Derek Yach, executive director of the World Health Organization, said at the three-day conference, which wraps up today.
"Over US$310-million was invested in better border controls. This is expected to yield an extra US$3.6-million in revenue over three years and assure continued declines in tobacco use."
Jump to full article » |