ericjones12398 writes "Today, many developed and developing countries including European Union nations, Australia, South Africa, Egypt, Turkey, Bangladesh and Vietnam apply excise taxes on unhealthy products. Research has shown that both for tobacco and alcohol, excise taxes are an effective way of reducing consumption. With respect to tobacco, a 10 percent price increase in cigarettes is shown to reduce demand by 4 percent in high-income countries and by 8 percent in low-middle income countries. Taxes imposed on cigarettes have not only prevented people from starting to smoke, but have also reduced rates of relapse for those who recently quit smoking."
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