National tobacco demand in the UAE is expected to slump by 40 per cent after a new 100 per cent excise tax on cigarettes goes into force October 1, say health and tax experts.
An effective doubling of prices for a single pack of cigarettes will not only help boost national health coffers to fund public health services, it will also jump-start a healthier population by reducing cancer-causing products and their long-term diseases across the country.
The World Health Organisation is lauding countries such as the UAE for imposing heavy excise taxes to curb tobacco demand and boost health.
To date, only 33 countries — representing 10 per cent of the world’s population — have imposed punishing “luxury taxes” on citizens who smoke, said the organisation.
“Tobacco taxes are the most cost-effective way to reduce tobacco use, especially among young and poor people. A tax increase that increases tobacco prices by 10 per cent decreases tobacco consumption by about 4 per cent in high-income countries and about 5 per cent in low- and middle-income countries,” said the WHO in a statement.
When taking the WHO formula and multiplying the percentage increase by 10 times to meet the 100 per cent excise tax coming into effect in the UAE, cigarette sales should fall accordingly to 40 per cent.
The drop will sharply cut the prevalence of smoking among people aged 15 or more, which according to WHO figures, stands at 28.6 per cent of males and 0.7 per cent of females in the UAE’s 9.3 million population.
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