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Raising excise taxes on tobacco – one of the best measures to protect the health of the nation and to fill state budget

kynuty-kuryty_jpg_203x203_crop_upscale_q85Original Ukranian vercion of the article is here

Despite the piercing cold and meticulous attention to the crowd near the Cabinet of Ministers of the six-year boy Peter confidently held open lesson for the Prime Minister Arseniy Yatsenyuk and other officials. In a large school board first grader firm hand painted graph that shows the positive impact of higher excise taxes to reduce the number of deaths from smoking. Since burdened by other public affairs “students” did not come, then Peter alongwith associates – the anti-tobacco movement activists handed Prime Minister and his deputies homework: to study shows a graph and calculate the reduction in smoking prevalence and possible budget revenues in 2015 of raising excise taxes on tobacco.

Activists insist that boy of six clear formula should be clear and officials, and during the arrangement of corporations to take into account the position of the public. Ctsenariy “higher excise taxes – more money in the budget – lower rates of smoking” repeatedly breakdowns in Ukraine, and, according to the World Health Organization, in all other countries where it is applied.

The name of the respective “Educational program for the Ministry of Finance, tobacco excise taxes save lives!” In takyysposib conscious Ukrainian protested against the agreement of the Ministry of Finance and State fiskalnoyisluzhby Ukraine with tobacco companies, which plan moratorium on raising excise taxes on cigarettes in 2015 – so anyway reported by some media.


Even a first grader knows more expensive cigarettes, the healthier nation. Photo by Vladimir ZAYIKY

EU says “Yes”!

Price measures are most effective and most effective strategies of the WHO Framework Convention on Tobacco Control. There is a simple formula and verified, after rising cigarette prices by 10% prevalence of smoking decreased by 4%. Our Association Agreement with the EU also provides for a gradual increase in excise duties on tobacco.

“Article 352 of the Association Agreement between Ukraine and the EU envisages gradual convergence of excise taxes on tobacco products. The current level of excise duty on tobacco in Ukraine (UAH 304.11 or 16.8 euros na1000 cigarettes with filter) five times less than the minimum EU (90 euros or 1467 USD). This situation requires constant raising excise taxes on tobacco in the coming years. We suggest as a first step in moving to the EU January 1, 2015 to increase the excise tax in Ukraine by 30%, “- said during class-action expert execution Alliance WHO Framework Convention on Tobacco Control Skipalsky Andrew.

The introduction of a moratorium on the increase tobacco excise taxes against the interests of the state, limits defined in the Association Agreement with the EU and the interests of public health. “System of raising excise taxes on tobacco products increases revenues to the state budget. We remind you that since 2014 the excise tax rate remained almost unchanged, and as a result, the first half of the budget received from tobacco taxes to 1,7milyarda USD less than the same period of 2013.

When the government initiative lypnya2014 1 year excise duty on tobacco was increased by 25%, and from September 1 – another 5%, the result in the third quarter 2014 income from tobacco taxes were at 0.95 billion higher than in a period of 2013 », – said Head of the tobacco control Ukrainian strategic Studies Institute of Ministry of Health, Konstantin Krasovsky.

We need those billions

The success of policies increasing excise evident in the longer term. Thus, during the years 2008-2013 revenues from excise taxes on tobacco products increased from 3.5 billion to 17.9 billion amid falling year of implementation of the 124 milyardivdo 75 billion cigarettes and reduce the number of smokers in Ukraine z10 million to 8 million. In percentage 2008-2010rokah excise increased 5 times and the prevalence of smoking decreased by 13%. And during the years 2010-2012, when the excise tax increased by 1.5 times, respectively, smoking prevalence declined by only 4%.

“Cigarettes are not available to children and young people, and the price of this poison – several times higher than, for example, the price of chocolate. Price measures have proved effective in Ukraine and carry out preventive work among smokers. As you can see, over the past three years, according to the State Statistics Service, each year the number of smokers in Ukraine decreased by 250 thousand. Unfortunately, some of them prematurely passed away. But thanks to the high price of cigarettes have become less affordable youth, there was no replacement of these young victims of tobacco on call, “- said the representative of the NGO” Life “SvitlanaSydorova.

Members lesson-action under the Cabinet passed an appeal to the Prime Minister and Minister of Finance with a request to prevent the introduction of a moratorium on the increase in excise duties on tobacco and promote the growth of excise taxes in 2015. At the time of the current financial problems to give up opportunities to increase revenue by levying tax poison borders on treason.

Oleg Lystopad, Ukr vercion is here:

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