Smoking taxes
As you will have heard, excises on smoking are going up. This will raise money (to the extent that smokers don’t quit) and reduce smoking (to the extent that they do quit). If you’re interested in the modelling used to estimate the impact on these conflicting goals, the Treasury’s Regulatory Impact Statement is a well-written and detailed explanation.
It’s also interesting to note that Treasury agrees the excise costs are already probably higher than the costs to other people imposed by smoking, and since the smoking excise is probably a regressive tax, the only convincing motivation for smoking excise taxes is to stop people smoking and so improve population health in the long term.
In this light it’s interesting that the Herald’s bogus poll for today is on whether increasing costs will lead to fewer smokers: at the moment, only 11% of responders think it will. Fortunately, there is strong evidence that the poll respondents are wrong.