Health Bureau argues for tobacco tax rise

Cigarettes For Sale As Reynolds American Inc. Nears Deal To Buy Lorillard Inc.In response to the World Health Organization (WHO)’s 2015 report on the global tobacco epidemic, the Health Bureau has issued a statement stressing its belief in raising tobacco taxes as an effective means to curb smoking and related health issues.
The bureau cited the WHO report to support its statement that tobacco use is currently responsible for the death of six million people across the world each year, with a death occurring on average once every six seconds. It further stated that over 17 percent of the city’s cancer-related deaths each year are caused by smoking and second-hand smoke; and the economic losses caused by active and passive smoking are estimated to be MOP4.71 billion.
“The WHO suggests that raising taxes on tobacco is an effective means to reduce the number of smokers, which thereby reduces occurrences of diseases caused by tobacco use and promotes health,” noted the bureau. It added that heavier tax-    ation on tobacco is also a “win-win measure that is not only cost-effective, but can also maintain a revenue stream to the government.”
With the report published on Tuesday, the WHO has appealed to governments across the globe to intensify their actions to combat the tobacco industry and dramatically reduce consumption of tobacco products, in order to protect public health. The organization stressed that tobacco is the only legal drug that kills many of its users. The report predicts that without further controls on the industry, the number of tobacco-related deaths in a year will reach over 8 million by 2030. Drawing on a proven correlation between tobacco consumption and taxation, the organization suggested a significant raise in tobacco taxes from 70 percent to at least 75 percent of the retail price.
The Health Bureau stated that it agrees with the WHO’s suggestion and believes it to be “a preferable policy for Macau, winning on both fiscal revenue and public health.” “In fact, tobacco is not a necessity of life; as was indicated in the WHO Framework Convention on Tobacco Control, raising tobacco prices and taxes can reduce the reliance on tobacco of people from all walks of life. It is an effective and key means to curb adolescents’ tobacco consumption,” it explained. BY

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