Ministries at Odds Over Calls for Increased Price for Cigarettes (Finland)

Helsingin Sanomat(Ya all know, that Finland paper) ^ | Wednesday 8.1.2003 (yes-funny date) | Helsingin Sanomat

[Mark]

Home - Wednesday 8.1.2003

Ministries at odds over calls for increased price for cigarettes

The Minister of Social Affairs and Health Maija Perho (National Coalition) and Director Vappu Taipale from the National Research and Development Centre for Welfare and Health favour considerable increases on the price of cigarettes, whereas the Ministry of Finance objects to the proposal.

The price increase was suggested by the Chairman of the Finnish Medical Association Heikki Pälve at the National Doctors' Convention in Helsinki on Monday. Pälve argues that the raising of the price of a pack of cigarettes by two euros to over EUR 5.00 for a pack of 20 would have a positive impact on prevention of smoking-related illnesses. For a person who smokes a pack a day, the new price would mean an annual increase of EUR 730 spent on cigarettes. Minister Perho believes a dramatic increase in the price of tobacco products would specifically reduce the number of young smokers. "But the price increase has to be drastic. A minor increase will have no effect on people's health habits", Perho explains. Vappu Taipale also feels Pälve's arguments are convincing. "Smoking causes unnecessary untimely deaths and I believe a price increase would reduce smoking."

The Ministry of Finance is not interested in proposing an increase to tobacco levies. Director General Lasse Arvela from the ministry's Tax Department issues the reminder that from next year the importing of tobacco products from other EU countries will be made considerably easier. Furthermore, Estonia across the Gulf of Finland will also join the EU in 2004, which is likely to increase the import of cheaper cigarettes from there. From 2004 onwards, theoretically it will be possible to bring in as many cigarettes from another EU country as one can carry.

When customs restrictions are removed from tobacco and alcohol products, there is a danger that people will start buying these products almost exclusively from abroad, which in turn will have a negative impact on tax revenue at home. In this situation raising the cigarette price in Finland would be questionable to say the least. "If anything, the price should be reduced so that people would keep making their purchases in Finland", Arvela points out. The Customs also fear that raising the price in Finland would increase cigarette smuggling, which is already a considerable headache as it is. Countries such as Britain, Sweden and Norway, which all have very high prices for tobacco products, also have major problems with contraband cigarettes. Minister of Health and Social Services Eva Biaudet (Swedish People's Party) also opposes the price increase, citing the impending removal of import restrictions. "Seventy percent of the cost of cigarettes already consists of tax", she explains.

[Mark]

Yes, FREE trade.

[Mark]

Minister Perho believes a dramatic increase in the price of tobacco products would specifically reduce the number of young smokers. "But the price increase has to be drastic. A minor increase will have no effect on people's health habits", Perho explains.

By that logic, wouldn't a total ban work wonders?

[Consort]

Helsinki

[Mark]

"If anything, the price should be reduced so that people would keep making their purchases in Finland", Arvela points out. The Customs also fear that raising the price in Finland would increase cigarette smuggling, which is already a considerable headache as it is.

Knock it off with the logic! Let's do a 10 year study on this issue.

[Mark]

In-Laws from Tampere. Cold out there!!

[The Obstinate Insomniac]

bump

[weikel]

This article is a wonderful demonstration that free trade is good and it works.

[inkling]

Today Nokia, tomorrow the world! The globe moves one step closer to the impending Finnish Hegemony.

My ancestors are from Turku!

[Willie Green]

This article is a wonderful demonstration that free trade is good and it works.

Hogwash.
European cigarettes taste like crap.
You can't give 'em away.

[Consort]

     Tampere

[Movemout]

The Brits have a few good brands. I smoked AhBays (HB) in Germany and they weren't bad at all.

[Willie Green]

I've never heard of them, but a Google search corrected the spelling to "Abhay".
I suspect they're actually imported from India.
Other cheap brands I've tried from India/Pakistan were putrid.
(Can't remember the names, but they were cheap.)

[Movemout]

I can't remember ever smoking any Indian cigarettes but I do remember smoking Turkish cigarettes and they were foul. Of course, the Turks were a bunch of mean SOBs by any standards you might want to apply so I am unsurprised.