Consumption of cigarettes will fall, says expert
This article was translated by an automatic translation system, and was therefore not reviewed by people.
FATIMA FERNANDES
the Folha de S. Paulo
The increase from 20% to 25% in the price of cigarettes due to the increase in the IPI (Tax on Industrialized Products) to reduce the consumption of the product in Brazil within three to six months, the assessment of doctors specializing in treatment of smoking.
Drauzio Varella, Cancer doctor, says that is proved by the World Health Organization that, every time you increase taxes and as a consequence, prices of cigarettes, consumption falls.
"The more expensive every dollar the price of cigarettes, reduce the purchase. And in Brazil, the price of cigarettes is ridiculously low. Certainly, the increase in price will reach the smokers, especially those with less purchasing power and also adolescents, "says Varella.
The average price of pack of cigarettes in the U.S. is $ 5 (U.S. $ 11.60). In Europe, 3.50 (U.S. $ 10.70) and Brazil, R $ 3.40, according to manufacturers. The price of cigarettes of Philip Morris vai de R $ 2,40 to R $ 4.75 a pack or box with 20 units.
To Jaqueline Issa, director of the anti-core area of Cardiology of the Heart Institute (Hospital das Clinicas), increasing the price of cigarettes is "the most effective measure to reduce consumption." "And this is visible in three to six months. Such measures were taken in Canada, Australia and New Zealand."
In the 90s, according to her, the WHO established three premises to discourage the consumption of cigarettes: price increase, ban on smoking indoors and in public transport and end of advertisements for cigarettes. "In Brazil, only missing the high prices," he says.
According to her, the high price will weigh in your pocket and will stimulate the demand for treatment of smoking. "And the government will have to do homework, which is to create mechanisms to improve the treatment of smoking by SUS [Unified Health System]. The demand for treatments up to about 20%."
Smuggling
In assessing the tax consultant Clóvis Panzarini, the price increase should boost the cigarette smuggling.
"The greater the tax burden, the greater the award by fraud. The defect is inelastic to price. The smoker will save on costs essential, as in the Milky children, and continue buying cigarettes. If increased smuggling, the government can collect up to less than before the tax move, "he says. Last year, the IPI of the collection of the cigarette industry was U.S. $ 3.21 billion. And in 2007, of $ 2.8 billion.
For manufacturers, raising the IPI of cigarettes should result in migration to the consumption of box set, which is lower IPI rate. The box is taxed at R $ 0.92, and set in R $ 0.62, according to Guilherme Athias, director of corporate affairs for Philip Morris Brasil. According to him, IPI, ICMS, PIS and COFINS represent about 60% of the cigarette. "What will happen is a reduction in revenues."
To Athias, the government should change the tax system to that of the United States and Japan, countries that adopt a specific value from taxation for any type of cigarette. In Brazil, there are six categories of cigarette with different taxation [in U.S. $ per twenty], "he says.
Albuquerque Anderson, lawyer for manufacturers, says the increase in tax will "benefit more because some companies [Philip Morris and Souza Cruz] over others, and could even generate massive layoffs in the industry." "If we are more the cigarette tax as an activity contrary to morality, the state should ban once and for all this activity and not create laws that affect the national companies," said Albuquerque.
Source: Reuters
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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