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

Applied Economics Letters

Journal article
Metadata
Region
Europe
Economy status
High-income economies
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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.