A price formula has been proposed to change the price of a cigarette. Accordingly the price of cigarettes could increase in the forthcoming Budget, said the Chairman of the National Authority on Tobacco and Alcohol, Dr. Samadhi Rajapaksa.
According to this price formula, the price of a cigarette would increase every year. “We have come up with a scientific and transparent pricing formula for determining the price of a cigarette. I think the introduction of a pricing formula for cigarettes is a historic step in the country. As long as there are cigarettes in this country, the price of cigarettes would increase every year, Dr. Rajapaksa said.
He said that steps would be taken to increase the price of cigarettes to a level where consumers could not afford them. “We are committed to save people’s lives addicted to smoking and lost due to various non-communicable diseases caused through tobacco use. Currently 60 smokers die each day.”
Tobacco use creates a significant economic burden on society at large. Higher direct health costs associated with tobacco-related disease, and higher indirect costs associated with premature loss of life, disability due to tobacco-related disease and productivity losses create significant negative externalities of tobacco use.
Effective tobacco taxes not only reduce these externalities through reduced consumption and prevalence but also contribute to the reduction of Governments’ expenditures for the health care costs associated with tobacco consumption.
Tax and price policies are widely recognised to be one of the most effective means of influencing the demand for and thus the consumption of tobacco products. Consequently, implementation of Article 6 of the WHO FCTC is an essential element of tobacco-control policies and thereby efforts to improve public health.
Tobacco taxes should be implemented as part of a comprehensive tobacco-control strategy in line with other articles of the WHO FCTC.