Health Officials Angry Tobacco Taxes not spent On Public Heath Campaigns

Last year 15 states, including the District of Columbia increase state duties on cigarettes raising the average tax across the states from $1.18 per package of 20 cigarettes in 2008 to $1.34 per pack.

Nevertheless, none of those states spent additional revenues from the excise tax increase on anti-smoking programs, according to a report by the Center for Disease Control and Prevention.

Terry Pechacek, one of the authors of this report, said that it has been evident that price hikes are one of the most effective methods for lowering adult and teenage smoking rates and preventing non-smokers from taking up cigarettes.
Therefore, spending the funds generated from tobacco taxes on smoking prevention and cessation efforts would help to further decrease smoking, according to Pechacek.

Taxes on cigarettes dramatically differ throughout the nation. Rhode Island is home to the largest cigarette tax at $3.46 per pack, whereas tobacco state South Carolina taxes cigarettes at only $7 cents per pack.

Pechacek, who is director for science at CDC, admitted that states with hefty cigarettes excise taxes, who spend tax revenues on anti-tobacco campaigns will reduce the expenses on health care in the future. For instance, California, which spends revenues from tobacco taxes on public health efforts, expects a $50 payback in lower costs on health care for every $1 spent on those efforts. Currently, California’s cigarette tax is $0.87 a pack.

Another research carried out by the World Health Organization showed that the rise in the price of cigarettes by 10% had helped to lower the consumption of cigarettes by 8% in developing nations and by 5 percent in industrialized nations.

The CDC research as well revealed that setting minimum prices on cigarettes is also e very effective method in reducing smoking rates. Last year 25 states approve minimum price regulations; however, just 7 of them have prohibited the discounts in determination of the minimum prices on tobacco.

Cigarette companies provide discounts to wholesalers trying to evade the excise tax hikes, according to CDC science director, who added that 10 states that have the lowest tobacco taxes don’t have any regulations outlawing discounts and other cost reducing mechanisms.

American Heart Association issued a declaration last week praising the state legislatures that have increased their cigarette taxes and calling on other states to increase their taxes, and especially those states with taxes lower that national average of $1.34 per pack.

Altria, the owner of Philip Morris USA, the leading cigarette maker across the nation, in the only representative of the Big Tobacco to back the legislation permitting the American Food and Drug Administration to control tobacco industry. However, the tobacco giant strongly opposes increasing tobacco taxes. The Marlboro-maker argues that tobacco tax is regressive, as it levies tax on all the smokers, and thus, hits especially hard those cigarette-lovers that have lower incomes, i.e. those who can not bear such increase. Such taxation policy as well encourages people to opt for counterfeit and smuggled products or to purchase tax-free cigarette at Indian Tribal shops.
In addition, the company admits excise duties decrease the revenues of retailers and dealers who operate tobacco shops, and do nothing to help fill holes in the budgets.

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