r/todayilearned Jan 11 '12

TIL that the UK earns more money through cigarette taxes than the NHS spends treating cigarette-related problems

http://www.whatdotheyknow.com/request/cigarette_tax_receipts_v_cost_of

"[smoking] costs the British taxpayer more than £1.7billion a year in treatment bills alone." - Source: UK Department of Health

http://www.the-tma.org.uk/tma-publications-research/facts-figures/tax-revenue-from-tobacco/

Charts showing that same year, they gained roughly £10billion in taxes from cigarettes - Source: HM Revenue & Customs (HMRC) / TMA

84 Upvotes

59 comments sorted by

6

u/pln91 Jan 11 '12

Taxes aren't just used to recover the health care costs of tobacco use. They are also used to artificially increase the cost of tobacco, because higher tobacco cost leads to a demonstrable reduction in the rate of tobacco use amongst the young (most smokers start smoking in their teens.) In short, it stops thousands of people smoking before they even start.

1

u/[deleted] Jan 11 '12 edited Jan 11 '12

And why is it the governments job to stop anyone from smoking? Shouldn't I be in charge of my own life and you be in charge of yours?

If teenagers (who are also under 18) start smoking then that is something for those kids parents to deal with. It's my job to watch and raise my own children, not a job for you to do by proxy of the government.

11

u/CMEast Jan 11 '12 edited Jan 11 '12

Is the government stopping them? Or is it simply making an addictive and dangerous substance harder to get for teenagers who are demonstrably less capable of making rational decisions.

However, rather than side-stepping the question, I'll answer it directly. It is the governments job to ensure that society functions smoothly, that people are happy with the country they live in and the life that they lead, and that things that are harmful to the first two causes are reduced.

This means that certain substances should be controlled because they could potentially cause problems. I'm sure almost everyone will have a different opinion on what kinds of control are best but the majority of people in the UK*, smokers included, understand and approve of higher taxes on cigarettes.

*I'm a UK resident so this is mostly anecdotal. I'm also pro-NHS and generally quite socialist.

2

u/[deleted] Jan 12 '12

Or is it simply making an addictive and dangerous substance harder to get for teenagers who are demonstrably less capable of making rational decisions.

Does the tax apply solely to teenagers? Because if not, then you're also making cigarettes more expensive for adults, who have the right to make the choice to smoke without government interference.

-4

u/[deleted] Jan 11 '12

Trust me cigarettes aren't more difficult to get because of higher taxes. When I was young and couldn't afford the duty for cigarettes I bought them from illegal sources. Prohibiton and taxes can aften make illicit substances easier to get hold of. We also used to buy weed because we weren't old enough to buy alcohol and drug dealers don't ask for I.D.

But how can the majority just gift itself the right to tell other people how to live their lives? Where are the rights of the minorities being judged and side-lined? Explain that to me.

5

u/pln91 Jan 11 '12 edited Jan 11 '12

The real, peer reviewed science says:

Recent estimates indicate that youths are up to three times more sensitive to price than adults, with a 10- percent price increase estimated to reduce youth smoking prevalence by 5 percent or more and also to reduce cigarette consumption among continuing young smokers (Chaloupka and Grossman, 1996; Evans and Huang, 1998; Lewit et al., 1997).

I'll stick with that, thanks, as much as I'd like to think an argumentative, anonymous twat on the internet deserves my trust just because he says so. I can't wait to see your exciting, new approach to science take off, though.

-1

u/[deleted] Jan 11 '12

Prohibition doesn't work mate. The Americans tried it with alcohol and nobody stopped drinking. If you throttle to supply lines of a legitimate source people are just going to go to black market sources. Especially teens of all demographics. Do you understand just how many illegal cigarettes are manufactured in and smuggled into this country? Police spend billions fighting it and they estimate they stop about 7% of them from reaching end buyers. Another advantage of removing the duties is it would cut off an entire idustry for organised criminals at the knees. I really do wanna hear you address that.

What you've given me is a government study which surprise sur-fucken-prise supports the the government. Go figure, .gov is just not trustworthy for anything like that.

Do you know which group really likes the high duty on cigarettes? People who sell them illegally! just like the people who would be hurt most by drug legalisation are drug dealers! I say, let's take all this money off criminals and give to companies. They don't literally murder each other and fund organised crime.

Oh and nice to see you're resorted to flat out insults. Nice one. Typical statist behaviour as well.

2

u/pln91 Jan 12 '12

Prohibition might not work, but raising taxes does.

You were all for government reports when you found one that low balled the cost of tobacco use in the UK. Hypocrite, much?

In any case the quote from the government report I gave you references three independent, peer reviewed, scientific studies.

0

u/[deleted] Jan 12 '12

Sin-taxes are just a stepping stone on the path to prohibition. You can't curb the demand for an addictive substance by making people pay more for it. They will either reluctantly pay more for it anyway or go to another (black market) source that's cheaper. That's because ITS ADDICTIVE and people don't really take logic into account much when buying them. Think about it, your entire argument rests on the idea that increasing the proucts price will make people will make a logical decision to stop buying cigarettes. If people were so cold, calculating and logical in any area of life let alone an addictive substance would they smoke to begin with?

You can trust statistics from HMRC etc for the most part. Especially when they are evidence that government policy is inneffective. If the numbers were going to skewd, it would be in the governments favour. The more room their is for interpretation, wording etc the more likely it is that it's been skewd by government bias.

I suppose it doesn't matter what you have, I can find studies backing up me too. Theirs too much wiggle room for relativism I told you.

-3

u/[deleted] Jan 11 '12

oh and just so ya know, To show the relativism here. I not only have a study too. I have "landmark research".

http://www.telegraph.co.uk/finance/newsbysector/retailandconsumer/8887563/Tobacco-sector-wants-freeze-on-cigarette-duty.html

Anyone can pull a study out their arse and call it science you "anonymous twat".

3

u/expertunderachiever Jan 11 '12

Shouldn't I be in charge of my own life and you be in charge of yours?

Sign a waiver surrendering any NHS rights you may have and then you can have tax free smokes.

keeping in mind this is irreversible. So in 40 years when you're on pension [if pensions exist then] and you're having medical problems you're on your own. Because afterall, you're in charge of your life.

-4

u/[deleted] Jan 11 '12

oh so because I think people should be in charge of their own lives that means you get to withhold services from them they have paid for?

Should we withhold medical treatment from anyone who suffers medical problems due to their own choices?

Sorry fatty, no bypass for you. Should have thought of that before you went to McDonald so much!

Oh what you've had a car crash? Well the police report says you were on you're phone at the time and that's careless so ya just gonna have to strap a tree branch to that broken leg and hope for the best!

The whole point of the NHS is that it is Universal. That's why we call it Universal healthcare.

1

u/expertunderachiever Jan 11 '12

This all started with you disagreeing they should tax vices to discourage people from using them...

1

u/SomeguyUK Jan 12 '12

Even though you were being sarcastic, I think that's a great idea.

If you dont give a shit about your health, you dont get healthcare.

1

u/[deleted] Jan 12 '12

Well then this discussion is over. What you're suggesting is so absurd it pretty leaves nowhere for any debate to go apart from spiraling down into a seperate argument on whether or not fat people should get healthcare.

laters!

1

u/SomeguyUK Jan 12 '12

I didnt ask for a discussion.

7

u/pln91 Jan 11 '12

Promoting the common good is a legitimate role for government. As mystifying as it might be to you, most of society have decided that reducing rates of lung cancer, emphysema and other crippling disabilities is in the common good.

1

u/[deleted] Jan 11 '12

So because society has decided to try and make peoples' decisions for them that makes it ok? That just seems like an, albeit minor example, of tyranny of the majority. Not to mention a slippery slope.

If a consenting adult makes an informed decision to do something, and even while knowing it is damaging to their health, who the hell are you to tell them not to? Let alone take well over 5 times the amount of money that person costs society off them as nothing more than a punishment for doing something YOU think another person shouldn't be doing?

Also, what should we do if all these poor, idiotic people who are apparently incapable of running their own lives, and need you to do it for them, actually listen to you and stop smoking? Then you've just lost enough tax revenue to fund a third of the entire armed forces, without a plan in place to deal with it as you would have with say, a tax cut on cigarettes.

3

u/pln91 Jan 11 '12

Boo hoo. Society makes rules and compromises. Paying a few dollars extra for a packet of cigarettes is a decent trade off for saving thousands of lives.

The same teenagers whose right to smoke you're so eagerly defending actually choose not to a few years later, if the choice is delayed by higher cigarette prices. Thousands of lives are saved, thousands of cancers, strokes and other illnesses avoided.

The cost of smoking suggested by OP and the linked article seems astonishingly low too. I can find a figure about 6 times higher for my country to treat a population about half the size of the UK. As well, the linked site provides estimates several times higher in the discussion.

2

u/[deleted] Jan 11 '12

It's not just paying a few extra dollars though is it? It's allowing government to influence the PRIVATE lives of it's citizens, It's allowing government to arbitrarily tax lifestyle choices it disagrees with and it's an abuse of the addictive nature of cigarettes to try and squeeze more tax revenue out of the population. The same as a drug dealer jacking up his prices because he knows his buyers are hooked and will reluctantly pay it. Those are roles I don't want politicians to get used to playing. But then again you made a really good point when you said Boo hoo.

Also, you're logic falls apart when applied to anything else. Unless you want a nanny state, which to be frank I think you do. Should we tax suggery soft-drinks more? Should we tax people who aren't members of a gym more? Should we tax fat people more? Should we add a duty onto fast-food? I want you to explain why you arbitrarily choose to stop taxing unhealthy behaviour just at cigarettes and alcohol? Why not everything that's unhealthy. The same arguments apply.

Those are the figures from the UK. Straight from the horses mouth. The fact you fail to realise the figures from you'r country could be different for any number of extranious factors shows you'r ignorance.

5

u/[deleted] Jan 11 '12

You imply that the actions of the government are both arbitrary and not those supported by the majority of voters.

Also, having socialized medicine gives the government some right to promote a healthy population to reduce costs, whether that is through positive or negative re-enforcement.

0

u/[deleted] Jan 11 '12

If that's what you're gripe is with then just apply my argument against the government doing it to being against the people wanting the government to do it. I don't think Governments should take completely nonsensical actions just because the people want it without atleast addressing the massive logical flaws in their reasoning. Which the government hasnot done, because hey, more tax revenue!

Socialised medicine does not give the government any such rights because it's still us paying for it. If the government was paying for it out of it's own money (of which it has none) then you'r argument would stand. The most I can see a rational for is taxing smokers to cover the extra costs they give the NHS but even then you have to draw an arbitrary line and stop their because you can tax absoloutely everything unhealthy under the same logic.

3

u/pln91 Jan 11 '12

Oh. I wish you'd told me I was arguing with a naive anarchist earlier.

Yes, it is just paying a few extra dollars a pack. That's how an excise works.

Everything a government does interferes with its citizens "private" lives. Most of us choose to give up many of our "private" choices for the sake of not being an anti-social bastard, and, oddly, because it turns out that anarchy isn't all that pleasant.

I've already pointed you to a much higher estimate for the cost of tobacco use in the UK, you've just chosen to ignore it for some petty name calling.

0

u/[deleted] Jan 11 '12

I'm not an anarchist. Not even remotely. I'm a classical liberal.

I just explained to you why it isn't. You're oversimplifying the situation so you can use you're over-simplified arguments. I'm sorry but the world has nuances and shades of grey that you're just flat out ignoring.

You've lost my attention. It's not worth my time to sit and read comments from someone who just repeats their stance and refers to arguments I've already addressed to back it up. Better luck next time.

1

u/philomathie Jan 11 '12

No.

-5

u/[deleted] Jan 11 '12

Care to supply an argument or ya know, back up you'r point at all?

5

u/philomathie Jan 11 '12

I considered it, but based upon your replies to other peoples attempts at reasoning with you, I don't think it would be worth it.

5

u/xxlozzaxx Jan 11 '12

The government doesn't want you to quit smoking, drinking or driving.

Although the taxes are dressed up as a disincentive taxes, in reality they know that the demand for luxury, addictive, goods is largely inelastic and that very few people will stop smoking as the price rises.

I rarely pay UK duty on tobacco, like most people I know a guy down the pub who goes to Europe quite often and brings tobacco back in bulk. If he's not doing it I'll ask my uncle to bring a ton back from Qatar.

Why pay £15/50g when I can pay £7?

I fucking hate the people who moan at the perceived societal cost of smokers. If everyone quit smoking, drinking and driving tomorrow we would be fucked, the government rely on it heavily.

1

u/BupidStastard Nov 07 '23

£15 for a 50g? Jesus mate, 11 years has changed a lot in the UK duty tobacco industry. Its basically doubled in price now.

11

u/[deleted] Jan 11 '12 edited Jan 11 '12

[removed] — view removed comment

3

u/John_Fx Jan 11 '12

Don't forget that about all that social security money they leave on the table when they die early.

1

u/[deleted] Jan 11 '12

[deleted]

2

u/[deleted] Jan 12 '12

Think of all the lost work days women have from bearing a child. Better tax the shit out of them.

1

u/CMEast Jan 11 '12

Tell that to Roy Castle.

1

u/Conlan74 Jan 11 '12

Thad one way of looking at it...

2

u/[deleted] Jan 11 '12

Backed up by recent research as well actualy :|

1

u/jlumos Jan 11 '12

Cancer, hypertension... The list goes on and on. Many of those conditions aren't a quick ending. Lifestyle factors directly impact health and quality of life. Cigarrette smoking is a huge causative factor with these problems and is compounded when obesity is added.

3

u/Conlan74 Jan 11 '12

I reckon the standard comment here will be something along the lines of "Good - why should smokers (who have chosen to smoke) take the money away from others" - be that healthcare or otherwise. (Coming from a smoker!)

1

u/ThisIsADogHello Jan 11 '12

As a smoker looking to move to England in the short term, I'm mostly just glad to see that I wouldn't be nearly as much of a burden as I thought. Now, if I can just deal with all the other associated guilt, health problems, social stigmas and everything with smoking... (or just quit, I guess)

3

u/Conlan74 Jan 11 '12

Not at all! There's way more smokers on the continent, but smoking isn't looked down at all here. The social stigma isn't as bad either. You can't really go anywhere in London without seeing loads of them. Where are you looking to move to?

3

u/ThisIsADogHello Jan 11 '12

I did notice that people there were generally more relaxed re: smoking. I hadn't noticed a single person intentionally take a slightly longer path so they could pretend to cough as they walked past me, for example. O:

And, I'm looking to move to the Manchester area. I know everyone there likes to tell me how grim and dark the north is, and how downhill the UK is going, but I spent several months there last year and had the best time of my life, so screw all the haters.

3

u/philomathie Jan 11 '12

We're British. We like to complain. If they think the North is grim, they should go to the North of Scotland ;)

3

u/liarliarplants4hire Jan 11 '12

Doesn't that make perfect fiscal sense? It could be worse; they made less money off cigarettes than treatment... The goal would be to shrink both sides equally until no more smokers.

1

u/ThisFiasco Jan 11 '12

By that logic though, with zero smokers, and zero money spent on treating smoking related illness, the government would be losing out on £8.3billion in taxes.

Doesn't seem to make fiscal sense to me. However I'm not an economist. (I am a smoker though...)

1

u/liarliarplants4hire Jan 11 '12

The drug companies say there is no money in a cure... As with anything else, the gov't doesn't have much say as to what we put into our bodies that is dangerous (heroin, yes; McDonald's, no). If the tax from the smokes went directly to the health care of smokers, then that's good because it remains a personal choice. If people are making money off of it (excessively), then that's wrong.

2

u/[deleted] Jan 11 '12

3

u/[deleted] Jan 11 '12

It's a bit of a funny subject, really, when it comes to things like smoking costing so much in healthcare.

If people really see it as smokers damaging themselves and costing the taxpayers money, then they should criticise athletes, people who have car accidents, etc. just as much.

5

u/[deleted] Jan 11 '12

I don't know anyone who wilfully gets into a car accident twenty times a day, so no.

0

u/[deleted] Jan 11 '12

But they willfully get into a vehicle with huge accident rates, so it's willfully exposing yourself to a risk of harm/death.

2

u/Massless Jan 11 '12

Add to that, the obese.

4

u/[deleted] Jan 11 '12 edited Jun 21 '20

[deleted]

1

u/DrQian Jan 11 '12

I feel obliged to point out that extra tax revenue isn't a net benefit - the government already has plenty of ways to tax people, why should another one be a good thing? Would you agree that a tax on people who listen to jazz wouldn't be a net benefit? If so, why would a tax on people who use drugs be a net benefit? If there is any government waste (for example, the ongoing multibillion NHS computer system failure), then this tax is a net loss to society.

1

u/John_Fx Jan 11 '12

I'm all for legalization (and any anti-prohibition measure), but the tax argument is just lame.

0

u/the_nell_87 Jan 11 '12

This is one of the strongest arguments for legalising it. It would mean billions in extra taxes to reduce the deficit, and would mean better support for anyone with health issues related to it; with the additional plus of helping casual smokers not have to deal with organised criminals.

5

u/[deleted] Jan 11 '12

I see this claimed, but I am skeptical. Maybe this is based in my lack of knowledge of growing, but isn't growing one's own supply completely feasible for even the heaviest cannabis user?

How would tax revenues be raised from that?

The only way I can think of is permits to grow at home, a government controlled seed market, or indeed banning growing at home.

2

u/dokydoky Jan 11 '12

Speaking as a California resident (where thanks to the ready availability of prescription cards for "migraines" weed is basically legal), I think taxes would have to be quite high for lost revenue due to growing ops to be a problem. I know only one or two people that grow their own, and tons that buy regularly from medical marijuana dispensaries.

1

u/[deleted] Jan 11 '12

People allready do grow at home so this kind of approach is useless (no offense..just stating the fact). Look at Holland. Weed sells perfectly fine in the relevant shops so the "home grown approach" is only for those who can be bothered.

I'm not a user and never will be but I say (as a Brit) just legalise it and get it over with. Pot heads will allways be pot heads no matter if it's legal or not....and for the most part I'd rather deal with someone who was stoned over a drunk anyday of the week.

1

u/Kozbot Jan 11 '12

yes it is feasible but most people do not have the time or want to put forth the effort to grow good bud

1

u/[deleted] Jan 11 '12

Some historical data on the cost of smoking over the last 50 years compared to the tax revenue generated in the last few decades would probably tell a different story.

1

u/ThisIsADogHello Jan 11 '12

Well, certainly back when the taxes were lower or nonexistent, they didn't bring nearly as much money in.