From: Zawya
Fresh concern that 100% increase in tobacco duty will fuel illicit trade by gangs targeting young people, and grow counterfeiting
Dubai, 5 March, 2014: Anti-smoking campaigners urging a 100% increase in duty on tobacco products in the GCC have been warned that the move would fuel illicit trade in the region by gangs targeting young people, and lead to a growth in cigarette counterfeiting, impacting on local businesses.
Press reports that GCC finance ministers are planning to effectively double the tax on tobacco within two years have been welcomed by health officials who say that this would be an effective way to stop children smoking.
The claim, however, is in contrast to the main findings of a white paper published last year on proposals for an additional 100% GCC duty on tobacco, the impact on smoking, and the effects on trade and social stability.
Two contributors to the report, which came from a round table discussion in Dubai last April, have now repeated the warning that an overnight tobacco price hike could have negative consequences.
Jonathon Davidson, Chairman of the British Business Group – Dubai and the Northern Emirates, and Managing Partner of Davidson & Co Legal Consultants, commented: “As I have said previously, the overriding objective of any government must be to improve the health of its population, and strengthen revenue streams.”
