Cigarette smuggling does not reduce the public health benefits of cigarette taxes

Listed in:

• Impact on public health
• Illicit trade

Abstract

The UK government estimates that 20% of cigarettes consumed in the UK are smuggled. Government documents express concern that because of smuggling further increases in cigarette taxes may not promote public health objectives. Elementary economic analysis demonstrates that the tendency of cigarette taxes to deter smoking is not diminished by smuggling. Smuggling does not reduce the public health benefits of cigarette taxes.