Tobacco.org

MANSUR: No tax without smoke 

In a recent addition to the government tax revenue, to make up for the growing budget deficit, the special tax on cigarettes was raised by almost a fifth. There was only one justification: higher prices will induce less smoking!

The economic arguments that deal with such a "sin tax" do not fully agree with this claim. . . .

Raising sin taxes alone does not lower consumption effectively. It does, however, increase illegal activities and places a greater economic burden on the poor.

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