Any increase in the price of cigarettes increases the incentive for smuggling
While opposing the Parliament’s decision to increase the tax on tobacco products, the head of the Program and Budget Organization said: reducing tobacco consumption in the country should not be pursued only through price policies, and now the increase in the price of cigarettes will bring an inflationary message to a large part of the society.
According to Isna, Dawood Manzoor stated in today’s public session of the Islamic Council and during the review of the program bill that was related to the increase in taxes on tobacco products, including cigarettes: Friends of the health field raise the right considerations in this field, which should be considered. be noted It is true that we have to create deterrents to reduce the consumption of tobacco in the country, but if we want to reduce the consumption of tobacco only based on price factors and increase the amount of taxes, we may not achieve the desired goal.
He further stated: Any increase in the price of cigarettes inside the country increases the motivation for smuggling. As now, there are different types of cigarettes smuggled inside the country. If we increase the official price of cigarettes in the country, the informal cigarette market will develop, which will result in indiscipline in the economy.
The head of the Program and Budget Organization further clarified: A large part of the society consumes tobacco and now this resolution of the Islamic Council sends the message that the conditions are inflationary and stability is disturbed. On the other hand, we have a permanent law regarding the cigarette tax. The method of increasing the cigarette tax is seen in the Value Added Tax Law. This is also seen in the annual budget. This paragraph does not have a programmatic nature.
Further, the representatives agreed with this paragraph of the program and therefore the price of cigarettes and other tobacco products will increase during the implementation of the seventh development program.