Does the tax on tobacco cover the costs of smoking related illnesses to the health service?
According to the 1996 paper: A cost-benefit analysis of the average smoker: a government perspective (Australian and New Zealand Journal of Public Health Volume 20 Issue 6, Pages 607 – 611) which specifically studied the Australian situation, taxes well and truly cover smoking related illnesses, even without the recent tax rises. Abstract: The aim of this paper was to compare the benefit and costs of cigarette smoking from the government’s perspective during a one-year period. This was undertaken by estimating, among other things, the publicly financed health care expenditure attributable to smoking and comparing it with tobacco taxes paid by smokers. This comparison of benefits and costs may provide a yardstick from which to measure the relative worth (in financial terms) an average smoker is to the government, an assessment that may be important when assessing health priorities and any level of commitment to reducing smoking rates. It is estimated that in 1989–90 an average smoker co
