World experience speaks about positive results of increase of the excise on tobacco

The statistics of quantity of smoking citizens in the various countries shows that for decrease in number of smokers it is possible to struggle successfully. One of disputable themes among the Russian experts is increase of the excise rate on tobacco and tobacco products.

The Russian experts assert that increase of excise rates only will temporarily make cigarettes less accessible and, simultaneously, will fill the budget. In their opinion, notable rise in prices for tobacco products quickly enough leads to market filling with the illicit goods. As a result volumes of the means arriving in the budget from the duty, are only reduced, the tobacco branch endures hard times, cutting down manufacture and reducing quantity of tax deductions. But the most important thing: the smoker all the same receives cigarettes under the price accessible to it.

Scientists do not agree with experts and cite as an example New York. Since July, 1st, 2002 the excise has been increased by cigarettes from 80 cents to 1,5 dollars. In a year New York could brag of that incomes in the budget have grown in 10 times! Thus the sales volume has fallen almost twice.

Now Russia has one of the lowest excise rates in the world: about 1 eurocent. For comparison the excise rate on tobacco in Great Britain makes about 5 euros on one pack. In the European Union the minimum rate of the excise (1,28 euros on a pack of cigarettes) which was accepted by all new members of EU is established.