Credit Finance

September 29, 2008

Financial Forecasts

Financial Forecasts
What are the financial implications of large numbers of people quitting smoking?

Here in the UK, our nanny state government has decreed that smoking will be banned in all public places. If this leads to mass quitting, there is going to be a black hole in the treasury coffers, as well over £4 from a £5 packet of cigarettes goes to the government. Based on 15 million smokers smoking an average of 20, thats £60million a day.

Are there any forecasts as to how much this might cost the UK taxpayer, and where the missing revenue will be recouped from?
In response to answer #1: the legislation has been extended to include private clubs in the ban.

& in response to answer #2: is the amount spent on healthcare for smokers greater than the amount earned from tobacco sales? I rather doubt it, but if anyone has figures to back that up, I would welcome them – along with details of the source, naturally.

One of many theories about the reasons behind such a move is that due to the increased taxation of cigarettes, many UK smokers have been turning to illegally imported cigarettes, which have actually reduced the amount of money the government recieve from the increased taxation on tobacco, and that by banning smoking in public houses, the availability of imported cigarettes and tobacco will be reduced; as much of the trade in these goods is done within pubs (but this is just a theory).

The alternate revenue that the government will recieve is already in effect, if you look at the statistics you will find that taxation on purchased goods, petrol and especially coucil tax have increased a staggering amount, while the weekly earning and benifits have remained the same.
It is doubtless that once the effects of lessened tobacco sales have reached the treasury, the poll tax will be extremely high, petrol will be as expensive as gold and alcohol and spirits will be taxed through the roof.

I personally decided to quit a couple of weeks ago, just before this decision came in – but I still disagree completely with the governments infringement on civil liberties.

Smoking is legal – cigarettes are legal, therefore it should not be a governmental decision on which public houses should and should not allow smoking. These matters should be left to the discretion of the pub landlord or the brewery. If a landlord chose to allow smoking in his bar, non-smokers would be free to seek out alternative pubs and clubs that would cater to non-smokers.
That’s what freedom of choice is all about.


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