Oct 262009

How do governments use cigarette tax as a method of reducing cigarette consumption?

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How does the government use tax and other policies to try and reduce cigarette consumption in the UK. Please give an answer in an economic format :) (e.g. try to explain with using a demand and supply analysis). Thanks

If there is a tax, smoker will stop buying cigarettes.

Answer mine??

http://answers.yahoo.com/question/index?qid=20081004100320AAtcKnG&r=w

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3 Responses to “How do governments use cigarette tax as a method of reducing cigarette consumption?”

  1. Mike H says:

    By raising the prices they are trying to curb the demand. As prices increase, demand decreases to a certain extent.
    References :

  2. alicialions says:

    Governments don’t use more than a fraction of the tax on cigarettes to help reduce cigarette consumption. They make commercials telling people of the dangers and print pamphlets telling about ways to quite, make new laws about where you can smoke and tell stores they cant have cigarettes visible to the public etc, but it is all a surface effort to make it look like they want people to stop….they don’t really because they get so much more tax money from them they spend on any non smoking program…they would lose hundreds of thousands if they actually where successful.
    References :

  3. Valentina R says:

    If there is a tax, smoker will stop buying cigarettes.

    Answer mine??
    http://answers.yahoo.com/question/index?qid=20081004100320AAtcKnG&r=w
    References :

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