Higher taxes on tobacco products sink overall sales

Graphic via Tornos News

In most european countries tax on tobacco products is used as a tool to reduce smoking and protect public health. Even though in Greece the public authorities are less concerned with public health  when it comes to smoking than most other countries, the need to raise additional revenue has inadvertently resulted in a reduction in tobacco product sales.

And while there has been a lot of criticism from market analysts that the latest tax hike on tobacco has reduced government revenues from the sector, the long term benefits on health expenditure will more than make up the 92 million euro shortfall in revenues.

Naftemporiki writes: Effects of a “tax tsumani” on tobacco products reportedly had the opposite result than the one desired, with the first figures of the year showing a dramatic decrease in related revenue for state coffers by 22 percent.

A recent Eurostat study has shown that nearly two-thirds of Greeks are inhaling someone else’s tobacco smoke on a daily basis, making Greece the worst nation in the European Union in exposing people to the health risks of passive smoking.

The same study shows that in Greece the proportion of the population 15+ who smoke was just under a third (32.6 % ), so smokers in Greece are now a minority. Bulgaria tops the rankings with 34.7 percent. Sweden only has 16.7 percent who smoke, with Britain the second-lowest with 17.2 percent.