CIGARETTE TAXATION

STEFANIA AND THEODORA

Taxation
In countries around the world, taxation for cigarettes varies.
It depends on the countrys laws and responsibility towards
preserving essential public services.

Taxation in the world

Cigarettes are smoked by over 1
billion people, which is nearly 20%
of the world's population.
About 800 million of these smokers
are men. While smoking rates have
levelled off or declined in developed
nations, especially among men, in
developing nations tobacco
consumption continues to rise.
More than 80% of all smokers now
live in countries with low or middle
incomes, and 60% in just 10
countries.

Ranking Country Number of cigarettes

1
Greece
2,996
2
Serbia
2,924
3
Bulgaria
2,822
4
Russia
2,786
5
Moldova
2,479
6
Ukraine
2,401
7
Slovenia
2,360
8
Bosnia
and Herzegovina 2,278
9
Belarus
2,266
10
Montenegro 2,157

Benefits of taxation
Health Win: Tobacco tax increases are one of the most effective ways to
reduce smoking and other tobacco use.
Budget Win: Every state that has significantly increased its cigarette tax has
enjoyed substantial increases in revenue, even while reducing smoking.
Higher tobacco taxes also save money by reducing tobacco-related health
care costs, including Medical expenses. States can realise even greater health
benefits and cost savings by allocating some of the revenue to programs that
prevent children from smoking and help smokers quit.
Political Win: National and state polls consistently have found overwhelming
public support for tobacco tax increases. Polls also show that, when it comes
to balancing budgets, voters prefer raising tobacco taxes to other tax
increases or cutting crucial programs such as education and public safety.

Taxation in the United

States
Although cigarettes were not popular in
the United States until the mid-19th
century, the federal government still
attempted to implement a tax on tobacco
products such as snuff early on in its
history.
On February 4, 2009, the Children's
Health Insurance Program
Reauthorisation Act of 2009 was signed
into law, which raised the federal tax rate
for cigarettes on April 1, 2009 from $0.39
per pack to $1.01 per pack. The increase
was to help cover the cost of increased
coverage under the State Childrens
Health Insurance Program (SCHIP)

Blue No Excise Tax Per Pack

Purple $2 Excise Tax Per Pack
Red $4 Excise Tax Per Pack

http://big.assets.huffingtonpost.com/cigarettetax.gif

Taxation in the European

Union
EU excise duty rules for tobacco products
aim to prevent trade distortions in the Single
Market, ensure fair competition between
businesses, and reduce administrative
burdens for operators.

Increasingly, excise duties for tobacco are

also seen as a means of supporting other
policies, particularly health policies.

EU legislation on excise duties for

manufactured tobacco defines the categories
of manufactured tobacco to be taxed
(cigarettes and other tobacco products), lays
down the principles of taxation and sets the
minimum rates to be applied.

Manufactured tobacco is also subject to the

common provisions for excisable goods
under EU law.

Black Market
An illegal traffic or trade in
officially controlled or scarce
commodities.
New York- With state cigarette
taxes at $4.35 per pack and the
Big Apple piling another $1.50
on top of that, New York has
become a major destination for
smuggled smokes.
Up to 60 percent of all cigarettes
sold in the state are smuggled
from elsewhere