The Framework Convention Alliance for Tobacco Control

COP-3 Resources

TAXATION AND PRICE - Countering Industry Claims

Claim: Higher tobacco taxes will hurt the economy.

Tax increases will lead to significant reductions in employment in tobacco growing and manufacturing, as well as more general wholesale, retail, and other economic sectors.

Consequently, the tax increases will have an adverse impact on the entire economy.

Truth: Tobacco farming and manufacturing account for a small and, in most countries, declining share of economic activities.

Generally, employment in tobacco farming is low relative to other farming activities. Due to the addictive nature of tobacco products, any decline in the demand for tobacco will be gradual allowing tobacco farmers time to transition from tobacco to alternative crops. Read more by downloading the full papers. Papers are also available in the languages below.

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