Cigaretets

BEIJING FOREIGN STUDIES UNIVERSITY - IBS SCHOOL A study of how a tax revenue levy on cig bettes affects tobacco usance Microeconomics Theory 1 INTRODUCTION Tobacco breathing in is unmatched of the near pro? remit industry in the world. Taxes levied on cigarettes and all some other(a) tobacco goods usually range more than the half of the bell of the real selling price. These taxes create an annual income for g bothwherenments higher than two hundred gazillion US Dollars1. It is medically proven that smoking is one of the ?rst causes for lung pubic louse and respiratory diseases. Taxes levied on tobacco are meant to be an ef?cient vogue to reduce the consumption of cigarettes. LITERATURE REVIEW Statistics show that thither are more than 1 billion of smokers all every(prenominal)place the world. They smoke about 6 thousand billion cigarettes every year. Every smokers smoke on the average of 1,600 cigarettes every year. In the next fe w years at that place go out be a decrease in tobacco consumption completely in tungstenern/ developed countries. On the other hand, there will be a remarkable summation for the ingest of cigarettes and tobacco goods in the Third World countries and ontogeny countries. The increase for the demand of tobacco goods will set up a market with huge benei?ts for Worldwide tobacco multinational companies.

Tobacco multinational companies have been looking at these countries as pro?table new markets , where taxation system in tobacco sector is preferably weak and where people are not as much assured of the c onsequences of the use of tobacco as much pe! ople are in the West countries. Advertisement for tobacco is particularly potent in development and Third World countries; It has a plentiful role in increasing the demand for cigarettes2. 1 hypertext transfer protocol://www.pmi.com/ita/tobacco_regulation/tobacco_taxation/pages/tobacco_taxation.aspx 2 http://www.smettere-di-fumare.it/numeri-del-fumo.shtml 2 The WHO (World Health Organization) argues that taxes on tobacco consumption are an ef?cient...If you need to get a full essay, order it on our website: OrderCustomPaper.com

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