News in English     | 15.02.2019. 17:23 |

World Bank presents a study on impact of tobacco tax increase on BiH househols

FENA Sanda Hrkić

SARAJEVO, February 15 (FENA) - The World Bank Office today in Sarajevo presented a study entitled 'Time to quit: The tobacco tax increase and household welfare in BiH'.

It is a document that shows that when taking into account medical expenses and additional income due to longer life expectancy, the overall impact of tobacco products price increase on households’ incomes is positive for 60 percent of the population in BiH.

An economist at the World Bank Office in Washington, Cesar A. Cancho, told reporters that this is the first study of its kind in Bosnia and Herzegovina, and hopes that it will help reach some empirical and scientific evidence that can be used to adopt future tax policies.

He says that after the implementation of this study in Bosnia and Herzegovina, they have seen that the poorest households here actually behave in the same way as in other countries where the study was conducted, with regards to the increase in cigarette and tobacco prices.

“Considering the reduction of costs due to reduction and quitting smoking, reduction of medical expenses and increase of total income and prolonging of working life due to prolonging life itself, it follows that from the increase in tobacco prices the greatest benefit is achieved by the poorest 60 percent of the population,” he stressed.

In his opinion, these are encouraging news, as this shows that the increase in taxes and the price of tobacco is progressive and has a positive impact on the deterrence of young people to start smoking and from continuing smoking.

Emanuel Salinas, Head of the World Bank Office in BiH, said the study was part of a campaign that they implemented in support of reducing tobacco use in Bosnia and Herzegovina.

They have been working with domestic authorities to adopt legislation on the prohibition of tobacco use, especially in public places, but also with a number of other organizations to raise awareness of the dangers of tobacco use.

Unlike the results of this study, in the public we can often hear information that the rise of tax on tobacco products favors the black market of tobacco products.

(FENA) S. R.

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