Record tobacco tax haul.
Tobacco tax revenues are expected to cross Rs200 billion for the first time this year on the back of a recent tax hike, and it appears the high tax burden is getting to smokers. However, unlike most countries that dedicate most if not all of their vice tax revenues to remedial efforts for combating those vices and towards social uplift, our government action remains purely punitive.
Still, the dual impact of high inflation and even higher tobacco prices has apparently led to a small decrease in smoking - one per cent of former smokers say high cigarette prices are the main reason they quit, according to a recent report. Indeed, the cost of cigarettes has gotten to the point where heavy smokers who quit can now dedicate a reasonably large amount of additional funds to pay for food and other household expenses that were entering a prohibitive price territory. Hopefully, these people will not be tempted to restart smoking if their financial situations improve.
It is also worth noting that the total tax revenue is dwarfed by the economic toll of tobacco use. Tobacco-related illnesses are estimated to cost the country over Rs620 billion a...
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