The EU's Tobacco Tax Increase: A Breakdown
Inappropriate strategy adopted.
Let's get the lowdown: The European Union is planning to link tobacco taxes with the prosperity of its member states. A 196-page proposal obtained by BILD indicates that the tax increase will apply to more than just traditional cigarettes - it'll impact novel tobacco products like tobacco heating systems, nicotine pouches, and e-cigarettes too.
Implementation in July
If the European Taxpayers' Union is correct, this move could mean a 20% rise in the tobacco tax in Germany, with a pack of cigarettes potentially costing an extra euro. Specialty products could see an increase of around 50 to 70 cents. Want to know when this change kicks in? As early as July.
Protecting Health, The Right Idea
Good news first: The EU Commission under Ursula von der Leyen wants to improve citizens' health by minimizing smoking, a major contributor to numerous diseases, including deadly cancers. Fewer sick people means fewer healthcare costs for an already strained system.
The Wrong Approach
But here's the catch: Around 28% of adults in Germany currently smoke, and only 8% have attempted to quit in the past year. Higher prices might not be enough to encourage more people to abandon cigarettes.
The Black Market Thrives
Here's a grim statistic: Over 1.7 billion cigarettes were sold on the black market last year, a 100 million increase from the year before. About half were smuggled in. Higher prices could drive the cigarette trade further underground, making cigarettes more accessible and affordable to consumers evading the tax.
Highlight Dangers, Not Hefty Prices
Instead of relying on steep price hikes, the EU could focus on educating the public about the health risks associated with tobacco use. This could include health discussions in schools, media campaigns highlighting current death and illness rates, or mobile information stands at local markets. These efforts might prove a more effective long-term strategy than the blunt price hammer.
If you're curious about further insights, you can reach out to [email protected] for more information on the effectiveness of the EU's proposed tobacco tax increase in reducing smoking rates.
The EU's planned tobacco tax increase, affecting not only traditional cigarettes but also novel products like tobacco heating systems, nicotine pouches, and e-cigarettes, is set to be implemented as early as July. This move, aiming to improve health and wellness by minimizing smoking, could lead to a 20% rise in tobacco tax in Germany, potentially making a pack of cigarettes cost an extra euro, and specialty products around 50 to 70 cents more. However, it's worth considering that this approach might not be effective in encouraging more people to quit smoking, given that only 8% of German adults have attempted to do so in the past year. Moreover, with over 1.7 billion cigarettes sold on the black market last year, increased prices could drive the cigarette trade further underground, making cigarettes more accessible and affordable to consumers evading the tax. Therefore, instead of relying on steep price hikes, the EU could focus on educating the public about the dangers of tobacco use through health discussions in schools, media campaigns, or mobile information stands at local markets, which could prove a more effective long-term strategy.
