International experience shows the positive results of raising the excise tax on tobacco

Statistics of the number of people smoking in various countries shows that the decrease in the number of smokers can be successfully combated. One of the controversial topics among Russian experts is to increase the excise rates on tobacco and tobacco products.

Russia's experts argue that the increase in excise tax rates only temporarily make cigarettes less accessible and, simultaneously, will fill the budget. In their view, increase the price of tobacco products quickly leads to filling the market for smuggled goods. As a result, the flow of funds in the budget from the excise tax, only declining, the tobacco industry is going through difficult times, curtailing production and decreasing the amount of tax deductions. But most important: the smoker still get cigarettes for him at an affordable price.

Scientists do not agree with the experts and give us examples of New York. From 1 July 2002 excise tax on cigarettes was increased from 80 cents to 1.5 dollars. A year later, New York could boast that revenues in the budget grew by 10 times! The volume of sales fell by almost half.

At present, Russia has one of the lowest excise tax rates in the world: about 1 euro cents. For comparison, excise rates on tobacco in the UK is about 5 euros per pack. In the European Union set a minimum rate of excise tax (1,28 euro for a pack of cigarettes), which took all the new EU members.