Basic economic gap related to smoking: reconciling tobacco tax receipts and economic costs of smoking-attributable diseases

Abstract

BackgroundTobacco tax rates set by various governments are not based on the idea that tax receipts should cover the costs incurred by smoking. It can be assumed that tobacco tax receipts (TTR) differ from the costs of smoking. The aim is to determine the global basic economic gap (BEG) between TTR and the economic costs of smoking-attributable diseases (ECS).MethodsBEG is described as the difference between the ECS and TTR. A total of 124 countries representing 94% of global tobacco consumption were included in the research by means of the creation of a database, the adjustment of input data and the identification of their intersection.ResultsThe global BEG reaches US$1438 billion per year. The global ECS are US$1911 billion per year. The global TTR are US$473 billion per year and compensate for only one quarter of the ECS. Within countries with the highest consumption of cigarettes, especially the USA but also Russia and Germany, the proportion of the ECS covered by the TTR is even lower, although private health expenditures have been taken into account.ConclusionsOur findings suggest that tobacco taxes would have to be globally increased by more than four times on average in order to cover the ECS or between two and two-and-a-half times if we take private health expenditures into account. The informational pressure concerning health risks associated with smoking aimed at reducing harmful consumption and improving global health can also be supported with these economic facts.

The Real Effect of the Czech Tax Policy for Combating the Tobacco Epidemic

“…Smoking has significant negative effects on human health, resulting in a large number of physical and mental illnesses and premature deaths (Doll et al, 2004;Johnson et al, 2003;Lasser et al, 2000;Smith et al, 2014;Thun et al, 2013;WHO, 2019) as well as high social costs including healthcare costs of smokers, second-hand smoking costs, employers' costs of smoking employees, cleaning up after smoking, damages incurred as a result of cigarette fires, and many others, borne by the whole society (David, 2018;David, 2019). Tobacco consumption is the most common preventable cause of premature death (Samet, 2013) and according to various estimates, smoking shortens life by an average of about 5 -15 years (CDC, 2008;John and Hanke, 2015;Streppel et al, 2007).…”

Evaluation of estimated direct health expenses on tobacco- and alcohol-related diseases in context of excise taxes revenues in the Czech Republic

“…An increase in the tobacco tax would lead to savings in the health sector (17). Another study deals with the global economic difference between tobacco tax receipts and the economic costs of smoking-attributable diseases (18). Tobacco tax increases deliver sizeable health gains and health sector cost savings (19).…”

Factors influencing cigarette smoking among police and costs of an officer smoking in the workplace at Nsambya Barracks, Uganda

“…There is indisputable evidence that tobacco use is a substantial public health concern with considerable economic ramifications [1][2][3][4] . The World Health Organization reports that global smoking-related diseases cost US$1911 billion per year and that by 2030 more than 8 million people will die annually from tobacco use 5,6 . The regions of the World do not share equally the burden of tobacco-related disease and death.…”

“…The regions of the World do not share equally the burden of tobacco-related disease and death. For instance, 40% of the costs of smoking are currently borne by developing nations and it is projected that by 2030 more than 80% of premature deaths due to tobacco will occur in lowand middle-income countries [5][6][7] . Among developing nations, tobacco use in African countries has received little attention given the perceived low rate of use and the critical need for more interventions for both infectious and non-infectious diseases.…”