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Should the Government Stand To Benefit From Smokers?

09/03/13

It's not a secret anymore that the government has a questionable opinion about tobacco products. On the one hand, there are so many bright speeches about nicotine and its harmful effects on human body, but on the other hand the government itself is trying to stand to benefit from cigarette taxes.

The abnormality was emphasized in the agreement between French government and tobacco manufacturers trying to cancel a fixed price increase. According to the statistics, the first half of the current year has shown a maximum downfall of French tobacco in the last 10 years. The sale of cigarettes in this period fell to 9% in comparison with the same interval of the previous year.

Until now, tobacco companies could save their budgets in spite of the raise of cigarette taxes by increasing the price. The French business daily wrote about the delay in tax hike on cigarettes till October. It stated that the downfall of cigarette sales is not beneficial for both parties: manufacturers and finance ministry.

However, despite such bright declarations government insists on its usual policy which consists of a moderate and progressive price increase on cigarettes in order to discourage the smoking society from this habit. The stated decision to put off the further tax raise follows the French tobacco operators campaign to freeze the price for the whole year. The campaign is going to take place in Toulouse very soon.

The high cost of cigarettes was criticized by the head of local retailers in France, Gerard Maury, who stated that this is 'an invitation to burglars'. He also added that the further raise of prices will only give a start to purchase tobacco products elsewhere outside the country where the prices are totally different. For example in Romania a pack of cigarettes costs just $3.70.

What is your opinion about this? Should the government go on to persuade the society of the necessity to quit smoking, receiving at the same time huge revenues from the sale of tobacco products?