2024-05-29 14:35:04
Based on him, a part of this downside is decided by the excise coverage, which needs to be based mostly on differentiating the harmfulness of tobacco and nicotine merchandise, not treating all merchandise equally.
Algirdas Bartkus, affiliate professor of the College of Economics and Enterprise Administration of Vilnius College (VU), agrees with such an evaluation, stating that when combining excise taxes for each tobacco and alcohol, it might be potential to rely extra on medical assessments.
L. Zakarevičius: we’re among the many nations the place the most important a part of tobacco merchandise is prohibited
Based on L. Zakarevičius, the worst phenomena are seen within the state of affairs of the tobacco market in Lithuania – massive commerce in unlawful merchandise and selective management of tobacco. Based on him, attributable to these quantities of smuggling, in line with the audit and tax evaluate firm KPMG, the price range losses quantity to about 80 million. euros.
“We’re nonetheless among the many nations with the most important share of unlawful tobacco and nicotine merchandise. We’re additionally among the many European nations the place the inhabitants smokes essentially the most – a few third. On the similar time, we’re additionally a rustic with a tobacco management coverage that selectively evaluates science,” he commented to Eltai.
“All this has a worth for society and the state. Price range losses are calculated extra merely – in line with the information of the analysis firm KPMG, it quantities to about 80 million. euros. The hurt of cigarettes to public well being can be incomparably higher, however such calculations usually are not carried out,” he asserted.
The Philip Morris Baltic consultant claimed that the outcomes of the survey present that Lithuanians are important of the present excise coverage. He additionally notes that on a European scale, 66 % respondents imagine that switching to various merchandise needs to be inspired as a substitute of cigarettes.
“Survey information present that the inhabitants misses consideration to those issues, criticizes the present politician and helps the adjustments. We additionally help the concept the objective needs to be to get rid of essentially the most dangerous tobacco merchandise. We are able to obtain this with the involvement of society and the state and by being attentive to analysis, scientific proof, being open to the seek for new options,” he commented.
L. Zakarevičius claims that there’s a lot of knowledge exhibiting that some nicotine merchandise are much less dangerous. Subsequently, in his opinion, the promotion of much less poisonous merchandise would contribute to the advance of public well being.
“There may be already appreciable scientific proof that totally different tobacco and nicotine merchandise usually are not equally dangerous. The checklist of unbiased research dedicated to this subject has exceeded 500 in a decade, and the USA, Nice Britain and different nations have declared that smokeless merchandise are much less poisonous and the transition to them can contribute to the advance of public well being”, mentioned L. Zakarevičius.
A. Bartkus: large-scale smuggling creates the alternative impact of excessive excise duties
At the moment, A. Bartkus believes that widespread unlawful commerce in tobacco or nicotine merchandise signifies that excise taxes usually are not fulfilling their perform of decreasing consumption. He claims that commerce harm is now seen to Lithuania, each by means of price range losses and thru the influence on the well being of the inhabitants.
“Smuggling will all the time pay extra so long as the costs in our nation are greater. That distinction is the rationale why individuals have interaction on this exercise whatever the threat,” mentioned A. Bartkus to Eltai.
“Excessive excise taxes decide that an individual is punished financially till the easy query of what they pay the cash for doesn’t come up. The merchandise he buys on the unlawful market have the alternative impact. As a result of legally, a pack of cigarettes can value 5 euros, whereas illegally it prices about 2-3 euros. And on this place, the client doesn’t see the three euros he spends, however sees the low cost he receives – 40%,” he commented.
The affiliate professor of VU additionally emphasised that, not like within the case of alcohol, customers of nicotine merchandise will proceed to purchase their favourite merchandise. This, in line with him, doesn’t depend upon costs or the financial standing of people.
“If an individual is a smoker, it does not matter whether or not he has or does not have a job, how his earnings adjustments, he’ll nonetheless smoke. Alcohol is extra of a luxurious merchandise that depends upon the usual of residing. It is all the time been that approach. (…) Alcohol is a essential commodity solely for many who have an habit, at the moment all people who smoke are depending on it,” he defined.
Subsequently, in line with A. Bartkaus, a “weighted” excise coverage, based mostly on medical verdicts, or making use of totally different excise duties to several types of merchandise, can be essential. In his opinion, though the Authorities did the precise factor by planning the quantities of excise duties for the yr forward, particular standards also needs to be established on the premise of which such items can be taxed.
“It’s a constructive factor that with this Authorities somewhat forward-looking excise planning is rising. Nevertheless, it’s based mostly extra on the type of settlement. The quantity of excise responsibility for some product is decided based mostly on what quantity we would like within the price range, and never on goal standards. However such standards might determine that tobacco excise may very well be one, alcohol may very well be totally different. And tobacco itself has totally different classes”, defined A. Bartkus.
“The excise responsibility coverage ought to then be utilized in a different way in relation to sure merchandise. All of them are dangerous, however the extent of hurt isn’t essentially related. And right here the docs might inform whether it is potential to one way or the other weigh him,” he added.
The second “Povaddo” survey of European Union residents “Perceptions of Europeans about unlawful commerce and taxation of tobacco and nicotine-containing merchandise” exhibits that 60 % of the inhabitants imagine that their nation has an issue with unlawful tobacco and nicotine-containing merchandise. Nevertheless, solely 6 % realized the extent of this and indicated that in 2022 EU nations misplaced 10-15 billion EUR of tax income.
At the moment, 76 % Lithuanian residents imagine that the nation faces the issue of unlawful commerce in tobacco and nicotine merchandise, however solely 7 %. perceives actual monetary losses in Lithuania.
2024-05-29 14:35:04