Raising the Tax Rate on Cigarettes

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1. If raising the tax rate on cigarettes both raise more revenue and reduces smoking, is there any conflict between the health and revenue objectives of the government?

If raising the tax rate on cigarettes both raise more revenue and reduces smoking, there will be no conflict between the health and revenue objectives of the government because the result comply with the health and revenue objectives of the government. The health objective of any government is always to reduce the amount of smoking-related diseases whilst the revenue objective is to gain more revenue and both of this can be achieved by raising the tax rate on cigarettes.

2. You are a government minister. What arguments might you put forward in favour of maximizing the revenue from cigarette taxation? By increasing the tax on cigarettes, it will reduce the amount of people smoking and hence making the government spend less on smoking-related diseases. This will lead to less secondhand smoke exposure among nonsmokers, especially children and pregnant women. It is clear that price has a pronounced effect on the smoking prevalence of teenagers and that the goals of reducing teenage smoking and balancing the budget would both be served by increasing the tax on cigarettes. A cigarette tax increase will reduce smoking among pregnant women, preventing thousands of spontaneous abortions and still-born births, and saving tens of thousands of newborns from suffering from smoking-affected births and related health consequences. 3. You are a doctor. Why might you suggest that smoking should be severely restricted? What methods would you advocate? Smoking should be severely restricted because one of most harmful impacts of smoking is to damage the health of both smokers and non-smokers. Smokers are taking large amount of toxic into their body daily. So those people persist in smoking must sooner or later be affected by smoking-related illness. Smoking is costing a large sum to smoke, and further,...
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