Tobacco costs global economy $1trn annually —Study

A study has revealed that tobacco costs global economy more that $1 trillion annually.

The study, The economics of tobacco and tobacco control, conducted by the World Health Organisation (WHO) and the National Cancer Institute of the United States of America, indicated that effects of unchecked tobacco production into global economy costs more than six million people their lives, “with most living in developing countrie” and an additional $1 trillion in healthcare expenditures.

The study, published on Tuesday, also warned that eight million people could die in a year if tobacco industry was not controlled.

“Left unchecked, the tobacco industry and the deadly impact of its products cost the world’s economies more than $1 trillion annually in healthcare expenditures and lost productivity, according to findings published in The economics of tobacco and tobacco control,” it said.

Globally, there are 1.1 billion tobacco smokers aged 15 or older, with around 80 per cent living in low- and middle-income countries, the agency added.

Saying that “tobacco control does not harm economies”, the agency said annual excise revenues from cigarettes globally could increase by 47 per cent, or US$ 140 billion, if all countries raised excise taxes by about $ 0.80 per pack.

“Additionally, this tax increase would raise cigarette retail prices on average by 42 per cent, leading to a nine per cent decline in smoking rates and up to 66 million fewer adult smokers,” it added.

WHO, therefore, advocated for policies to control tobacco use, including tobacco tax and price increases, saying this can generate significant government revenues for health and development work.

Such measures, the agency said, could “greatly reduce tobacco use and protect people’s health from the world’s leading killers, such as cancers and heart disease.”

The agency added that control of illicit trade in tobacco products is the key supply-side policy to reduce tobacco use and its health and economic consequences.

WHO’s Director for the Prevention of NCDs, Dr Douglas Bettcher, said the new report gives governments a powerful tool to combat tobacco industry claims that controls on tobacco products adversely impact economies.

“This report shows how lives can be saved and economies can prosper when governments implement cost-effective, proven measures, like significantly increasing taxes and prices on tobacco products, and banning tobacco marketing and smoking in public,” he added.