Print

Mail

wiki links

Letters:

Keep raising cigarette taxes

In his article, Wu Ting-Feng (吳挺鋒) claimed that the proposed increase in the cigarette tax from NT$5 to NT$8, as specified in the amended Tobacco and Liquor Tax Act (菸酒稅法), not only will fail to make smokers give up their habit, but also would deprive poor people of their wealth ("Cigarette tax can't stop people smoking," Oct. 8, page 8). He argued that, for Taiwanese smokers, the main reason for smoking is the stress of work. Nothing can be further from the truth, and Wu does not understand the reality of smoking.

Increasing cigarette taxes has been proven worldwide to be the most effective way to curb smoking. For every 10 percent increase in price, there will be a 4 percent reduction in cigarette consumption for adults and double that for youths. A higher cigarette price will enhance one's motivation to quit. An increase in the cost of tobacco will actually help poor people not only to think twice about their smoking but also will eventually end up improving their health and reduce the gap in health between the poor and the rich. Here are the reasons:

First, raising cigarette tax does reduce consumption. Although cigarettes are an addictive product, they also follow the rule of supply and demand. Since 1980, there has been overwhelming evidence from the US, the UK and other countries showing the most effective way to curb the epidemic of tobacco is raising the price of cigarettes. They have implemented a high-price policy for years and keep raising the price. California and Massachusetts have shown a clear cause and effect of between price and smoking.

Cigarettes in Taiwan are cheap, which encourages adults and young people to smoke. Taiwan's cigarette prices are among the lowest in the world. For example, it would take a smoker 27 minutes of work to earn the money needed to buy a pack of cigarettes in Hong Kong and 56 minutes in China, but it would only take 10 minutes of work in Taiwan to buy a pack.

Starting in the 1980s, Hong Kong has raised cigarette prices -- from HK$3.8 in 1982 to HK$32 last year and the adult smoking rate has almost halved during this period, dropping from 23.3 percent to 14.4 percent.

Second, higher cigarette prices will improve the health status of poor people while saving their money. The rich will continue to buy cigarettes and get hurt by smoking, while the poor will cut back on smoking and quit eventually, and become healthier.

Studies have found that the poor will, in the long run, be very thankful for whoever comes up with the idea of price increases. Part of the reasons that the health of poor people in this country is worse than that of rich people is because the poor smoke more than the rich.

Through higher taxes, ciga-rettes will be affordable only to the rich. In this way, the health disparity we observe between the rich and the poor in Taiwan would decline. The poor will save the money. The government could use the tax revenue from cigarettes to help the poor quit smoking, by providing free nicotine patches. It is a win-win-win situation.

Third, chewing betel nuts and smoking cigarettes are not in the same league. The health risks they pose are worlds apart. The health risk of betel nuts is limited to oral cancer, while smoking causes a variety of diseases -- cancer of the lungs, liver, stomach and bladder, heart diseases, diabetes, asthma and respiratory diseases, and even accidental injuries.

For another, the number of people involved in Taiwan differed substantially. Nearly 5 million people smoke in Taiwan but less than 1.5 million people chew betel nuts.

Fourth, calling a cigarette tax "regressive" is an argument the tobacco industry frequently uses in opposing tax increases. In fact, the key point is the tax structure. If a tax is attached to the price, not the quantity, the rich who like to smoke foreign brands will bear the brunt of the tax hike, not the poor. So a cigarette tax is a very "progressive" policy, not regressive.

The hazards of smoking have been grossly underestimated. Smoking is the No. 1 preventable disease, which costs the lives of 20,000 Taiwanese every year.

As a civilized society, we have an obligation to help reduce such a calamity. Raising cigarette prices is the most effective way to curb the epidemic -- and improve the health of the poor. There is no better way to see this happen, not even our national health insurance.

Cheng Ting-Yuan
Division of Health Policy Research, National Health Research Institutes
Taipei
This story has been viewed 2231 times.