South Africa: NGOs call for 100% tax hike
October 26, 2020
Par: communication@cnct.fr
Dernière mise à jour: October 26, 2020
Temps de lecture: 3 minutes
In order to reduce consumption and ease the economic burden of smoking, several anti-smoking NGOs are calling on governments to double taxes on tobacco products.[1].
As part of the #protectournext campaign, the National Council Against Tobacco (NCAS), the South African Medical Research Council (SAMRC) and the Heart and Stroke Foundation of South Africa have called for a 100% increase in tobacco taxes. As the NCAS points out, tobacco tax increases, when lower than the level of inflation or income growth, have the effect of making smoking more affordable over time.
NGOs denounce the cost of tobacco in South Africa
In this respect, the tax increases in 2020, of the order of 0.74 Rands per 2020 packet, or 4 cents, were below those adopted in 2019 (6 cents), themselves lower than the increases in 2018 (6.4 cents). For these associations, these tax increases, bringing in 12.5 billion Rands to the State (650 million euros), are still far from sufficient: the cost of tobacco is estimated at 42 billion Rands (2.19 billion euros) in South Africa, including health expenses as well as productivity losses.
Raise taxes to reduce tobacco consumption
The tax increases are part of a drive to reduce smoking in South Africa. A study by the Excise Economics Research Unit (REEP) found that nearly a third of respondents who smoked said they had tried to quit during the government’s suspension of tobacco sales during the Covid crisis.
Generally speaking, tax increases on tobacco products are identified as the most effective way to reduce consumption among a population, starting with young people and working-class groups, who are more sensitive to the price argument. Furthermore, a recent study published on Tobacco Control sought to measure smuggling levels in several countries, including South Africa, before and after tax increases. The researchers concluded that tax increases did not lead to a significant increase in illicit trade.
Keywords: NGOs, South Africa, Taxes
[1] The Citizen, Lobby groups call for 100% tobacco tax hike, 10/26/2020, consulted the same day
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