Dutch lawmakers have called for the reversal of a recent increase in excise duty on tobacco goods. With actual wages lower than expected, cancer groups are strongly opposed, stressing that the tax increase is aimed at persuading young people to smoke.
According to the NL Times on December 3. Dutch member Henk Vermeer called for the repeal of the recently increased excise tax on cigarette goods due to lower-than-expected real wages from the measure. Cancer group KWF Cancer Foundation strongly objected, stressing that the purpose of increasing excise duty on cigarettes is not to raise revenue, but to persuade young people to smoke.
As of April 1, the excise duty on cigarette products has increased significantly, from 5.85 euros to 7.81 euros per pack of 20 cigarettes. Today, the cost of buying a packet of tobacco in the Netherlands is more than 11 euros. However, revenue performance after the tax increase has been disappointing. The Finance Ministry confirmed to the media that the latest figures show that the tax increase will be about 550 million euros less than expected. Sales of cigarette products in the Netherlands have declined significantly, resulting in a reduction in excise revenue from cigarettes.
According to the RIVM survey, about 10 percent of smokers quit because of the price increase. The researchers also noted that the proportion of tobacco imported from abroad increased from 24-28% to 35-39%.
Vermeil said,
- “These figures confirm my previous predictions. The only reduction was in government revenue, and the number of smokers did not decrease significantly. If we do not cancel the tax increase, it is a fiscal robbery.
In the ruling party’s view, those who choose to buy tobacco across borders are likely to make other purchases abroad.
- It also means less revenue from VAT and corporation tax.
The KWF Cancer Fund will strongly oppose another reduction in cigarette prices.
Karal van Giles, executive director of the agency. Caral van Gils said,
- There is enough scientific evidence to support this, and raising the price of cigarettes is very important and effective.
