Raising the price of cigarettes through taxation by 5% overhead inflation will radically lower the number of people smoking and save the National Health Service millions, according to a recent study.

So, the increasing tobacco prices have only advantages for economy and even for inhabitants’ health.

The World Health Organization found that raising tobacco prices thorough taxation by 5% above inflation would have the following results:

• lead to a decrease in the number of smokers by 190,000
• save the NHS over £20 million a year by lowering the cost of treatment of smoking-related diseases
• reduce smoking-related lack in the work place saving over £10 million a year
• and even increase government tax incomes by over £500 million a year

The economist Howard Reed, director at Landman Economics found also that such kind of a tax rise would result in wider economic benefits in the first five years of over £270 million per year.

For to calculate both the economic and income benefits of increasing tobacco taxation, the researchers used two economic analysis models: benefit analysis CBA and public finances analysis PFA.

Because of this research ASH has now called on the government for to increase the price of tobacco through taxation by 5%.

This purpose was supported by almost 49 other public health organizations including the British Heart Foundation, Cancer Research UK and the Foundation for the Study of Infant Deaths.

Deborah Arnott, ASH chief executive, explained: “Smoking is a childhood addiction and not an adult alternative. By increasing tobacco taxation we help to discourage children from buying cigarettes. An above-inflation rise would also help adults stop smoking.”

So, researchers concluded that a rise in the price of tobacco is good for the health of the individual as well as for the health of the country.

By Sara Norton, Staff Writer. Copyright © 2010 Cigarette-Store.org. All rights reserved.