GOV'T: TOBACCO TAX HEALTH & REVENUE WIN

The Finance Ministry says the increase in the Excise Duty on Tobacco Products  is not just about raising revenue — it's about saving lives.

Transcript

00:00As the Upper House considers the excise duty tobacco products amendment order,

00:05Minister in the Ministry of Finance, Kennedy Swarad Singh,

00:08says tobacco taxation offers a dual benefit,

00:12boosting government revenue while improving public health.

00:16He cited a 2017 World Bank report which identified higher tobacco taxes

00:21as quote-unquote the single most cost-effective measure to reduce tobacco consumption.

00:26The benefits of tobacco taxation, however, go beyond the public health.

00:32As documented in recent reports by researchers at the International Monetary Fund,

00:38in many countries rising tobacco taxes can offer a win-win scenario,

00:42namely increased revenue coupled with positive health outcomes.

00:47When countries, circumstances, and governments' weighting of revenue,

00:52health and other socioeconomic objectives vary,

00:57the desirable level of tobacco tax rates in many cases are far below what is feasible

01:04in terms of potential revenue.

01:06In the case of Trinidad and Tobago, this increase is an important measure

01:09that can support the initiative governments have set to accomplish.

01:14Through excise taxes on alcohol and tobacco,

01:17the government projects to earn an additional $1 billion in revenue,

01:22while the health sector, he says, is expected to save about $200 million in treatment costs.

01:28We on this side are not in the business of focusing our time, energy and resources

01:34on making the rich even better.

01:36We are here to do the job that for 10 years they failed to do.

01:56We are here to lift the poor and vulnerable out of poverty, disease.

02:01Swarid Singh insists the increase is not a punitive measure,

02:07but a well-considered policy, one that may soon extend to vaping products.

02:12We are also looking at vapes as well as,

02:16as well because the public, especially the younger generation,

02:21are moving away from tobacco to vapes.

02:24Vaves are also very harmful and studies are still being done

02:27to determine the extent of damage this cause compared to cigarettes.

02:31Needless to say, the government is also looking

02:34and will contemplate the required action against vapes in the near future.

02:41Aravishi Tiwari, Rupnarain, TV6 News.