Drugs, tobacco and alcohol: the “social” cost far exceeds tax revenue

2023-08-02 16:04:54

Tobacco is the drug that costs society and the French state the most, with 156 billion euros per year. Alcohol is in second place with 102 billion. Finally, illicit drugs cost 7.7 billion.

Contrary to popular belief, legal drugs do not bring benefits to the state. Their cost to public finances remains much higher than tax revenue according to a study by the French Observatory of Drugs and Addictive Tendencies (OFDT) published on Monday, July 31. “Drugs impoverish the community”, therefore concluded Pierre Kopp, author of the note and professor of economics at the University of Paris 1 Panthéon Sorbonne.

These figures are obtained through a complex calculation. It takes into account the value of human lives lost, the loss of quality of life, cancer patients linked to these drugs, losses for companies but also savings on pensions not paid to people who died prematurely. The cost of prevention and care for public finances and tax revenue from taxes levied on alcohol and tobacco are also included in this calculation.

For the State, “the revenue from the taxation of alcohol and tobacco, respectively 4 billion euros and 13 billion euros” are lower than the cost of treatment for diseases caused by these two drugs. that is to say 7.8 and 16.5 billion euros, specified the OFDT in its report.

Consumption down

However, the study notes a drop in consumption: public policies have made it possible to “significantly reduce tobacco consumption, improve the care of illicit drug users and strengthen awareness of the dangers of alcohol. “. Sales of tobacco and cigarettes have been halved since 2000.

Although the study shows that the number of deaths caused by these drugs has decreased, tobacco caused 73,189 deaths in 2019, 41,080 for alcohol and 1,230 for illegal drugs. “The fight against tobacco is a measure of good economic and fiscal sense”, recalled in a communiqué the national committee against smoking (CNCT). “Studies show that a reduction in tobacco consumption frees up purchasing power among former smokers, redirected towards the consumption of goods and services that create activity, and therefore tax revenue.”