Jump to full article: Kyiv Post (ua), 2009-11-20
Author: Konstantin Krasovsky
Intro: Tobacco tax increases are the most effective way to encourage people to stop smoking.
Ukrainian President Victor Yushchenko, citing concern for the tobacco industry, on Nov. 11 vetoed legislation that would have hiked the excise tax on tobacco products once more.
It is worth remembering that - even though tobacco excise taxes were increased in September 2008, and again in February and May of this year - cigarette prices in Ukraine remain among the lowest in Europe. This leads directly to a public health catastrophe for the nation and creates conditions for rampant smuggling of made-in-Ukraine cigarettes to other nations.
. . .
However, tobacco companies in Ukraine claimed that this tax increase would have been disastrous for their business. . . .
Transnational tobacco companies came to Ukraine in 1993. They promised employment, investment and revenue. Now they control 99 percent of the tobacco production in Ukraine. In 1992, Ukraine produced 9,000 tons of tobacco leaves. However, despite huge increases in cigarette production, tobacco growing has almost disappeared in the country. In 1996-2008, the foreign trade balance of tobacco leaves and products was negative for Ukraine and totaled more than $2 billion. It actually means that Ukrainian smokers invested $2 billion in the economies of other nations.
What tobacco companies actually produce is death. . . .
Many politicians in Ukraine already understand that high tobacco taxes are good both for public health and public revenues. I hope that the current and future president of Ukraine will understand this as well.
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