Psychiatrist Jayamal de Silva, Senior Lecturer in Psychiatry at the University of Sri Jayewardenepura, outlines how methodical tax increases can be used as a major push to discourage the smoking of cigarettes and other tobacco-based products in order to create a healthy nation.
He outlines his scholarly discourse as follows:
promoting cigarette brands, other tobacco-based products, and dangerous drugs through advertising.
Today we observe an unrelenting and concerted effort to promote the use of drugs, alcohol, and cigarettes in the country through various promotional campaigns.
Subtle propaganda campaigns are being carried out through teledramas or films aired under acceptable norms and conditions.
To date, no recognised organisation has made a declaration that they would stop campaigning. This is because their organisations are facing various financial difficulties. Hence,they always touch every nook and cranny where their products can be socialized.
At present, advertising blitzes have flooded the electronic media and social media platforms, exceeding regulatory manoeuvring introduced by the authorities.
For example, university-level children receive money from various institutions and give publicity through the use of social media in their respective groups. The children tend to think that this is an act of friendly overture. What the children don’t realise is that when they get used to tobacco, they become addicted sooner rather than later.
Loopholes in the cigarette tax
For example, previous governments have seen a reduction in the sale of cigarettes. However, correspondingly, the income of tobacco companies has increased many folds. As usage decreases, sales decrease and revenue increases due to a large gap between the taxed price and the selling price of cigarettes.
The profit accrued accumulates in the company coffers. The government is at a loss as far as the profits are concerned in the absence of a proper tax instrument.
This kind of situation is caused by flawed economic policies. If the government has to collect taxes, it should follow a flawless economic policy.
When smoking decreases, trade tends to decline. Nevertheless, when the price increases, the government’s income should increase correspondingly. But what is happening now is something contrary to the forecast. The price increases will inevitably give a boost to the company’s income and increase it by several folds compared to the increase in the government’s income. This is a complete distortion.
When the company’s revenue increases, it spends more on advertising campaigns. They also make it a point to sponsor events and officials or authorities who could help them publicise their products. Then again, the country will be affected in the long run due to social, economic, and health deterioration.
The recurring health issue
Still, if sales are high and consumption is also high, health problems will naturally rise. For example, during the last COVID pandemic season, several young children smoked the same cigarette, and the trend of COVID infection spreading rapidly increased. At that time, there was no COVID vaccine. In such situations, the government will be compelled to spend more money on health, putting lives at risk.
When a smoker blows out the smoke, the pathogens spread through the water bodies. Asthma patients who smoke cigarettes or beedis have to be cautious since inside their homes, when they breathe in and out, the pathogens spread, putting households, especially children, at a risk. Children are more likely to contract asthma if they are exposed to these pathogens, wittingly or unwittingly. If an asthmatic gives up smoking immediately, the effect on the rest of his family will be reduced. Not only that, it also helps in controlling asthma. These are called “good health habits.”
WHO conclusion
In any case, if you stop smoking, you will get health benefits. It will also reduce the country’s tax revenue being spent on those who are addicted to alcohol and cigarettes, and whose health has deteriorated.
A study conducted by the World Health Organization in Sri Lanka in the year 2015 confirmed that fact. Sri Lanka’s tax income and other huge costs have been spent on the treatment of people who have become ill from smoking and drinking in Sri Lanka. In addition to that, the government has to bear another huge cost for the police department, excise department, and legal affairs to control this.
By deceiving the country and sacrificing the lives of the people, the tobacco companies are doing a disservice to the country. At times, they work hand in glove with the political authorities to accrue economic benefits.
The price of cigarettes should be increased.
What must be done at this moment is to increase the country’s income by increasing the price of cigarettes. At the moment, even if the price of cigarettes were increased, the demand would not fall by fifty percent. Sales do not decrease proportionally to the increase in price. Government revenue can be increased by increasing taxes. But sales do not decline completely to zero. This is theoretical.
We proposed it to the government. Make a price formula for this. At present, the price of essential items like rice, sugar, lentils, and dried fruits has increased by at least threefold. Why is it that the price of a cigarette has not been increased?
Under this condition, the ability to buy cigarettes has increased. If someone stopped smoking, no one would save that money. That money is used for a need at home. It also belongs to the government indirectly. If what was spent for the evil of the family is spent for the good, it will augur well for the country.
The deception of the people of this country by talking about cigarette grafts should be stopped now. People should understand the truth. People should realise why the government is reluctant to increase the tax on tobacco. The government’s perception that it is accruing cigarette tax money through the tourism industry is far from the truth.
It should be understood that the young cannot be protected by health education alone.
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