Taxation and price: countering industry claims
All of the following claims are not true. This fact sheet explains why.
- Higher tobacco taxes will hurt the economy.
- Higher tobacco taxes will reduce tax revenues.
- Higher tobacco taxes will increase smuggling.
- Higher tobacco taxes will hurt the poor.
- Higher cigarette taxes will encourage smokers to switch to cheaper cigarette brands and/or other tobacco products to avoid taxes.
- Higher tobacco taxes will not reduce tobacco use.
- Tax rates are already too high.
- Governments interfere with consumers’ freedom of choice when they tax tobacco and discourage use.
- Governments’ responsibility should end with making the risks of tobacco use widely known to people.
- Tobacco companies agree with sensible industry regulation, including small and predictable tax increases that do not encourage smuggling.