Gulf Cooperation Council Warned Tobacco Tax Increase Could Boost Smuggling

Analysis

A panel of experts have published a white paper suggesting the introduction of a GCC-wide tobacco tax could see a rise in smuggling and young people falling into the hands of smuggling gangs.

The GCC countries have been considering introducing a 100% tobacco tax which would be imposed on all tobacco products for a number of years. They first increased the tariff on tobacco imports in 1995 by 100%, voted to reduce nicotine content in tobacco products, and banned their production of them in any GCC state. In 2001, health ministers asked the council to increase the tariff by another 150%. This request was rejected and the council agreed to focus on other anti-smoking measures instead.

The white paper went onto say there is no evidence doubling tobacco duties significantly cuts the number of people who smoke despite a World Health Organisation report which said a 10% price increase in tobacco tax in a high-income country would result in a 4% reduction in smoking levels and the price of a packet of cigarettes rising by 50%.

First reported in The National on 23 May 2013.