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The Tobacco Tax Censure

In Ukraine public health scientists are not pleased because the high tobacco taxes were vetoed. They also accused Yushchenko because he accepted the new anti-tobacco legislation.

Ukrainian President Victor Yushchenko introduced such a law only for to maintain the relations with the tobacco industry, however he fears of cigarette smuggling. That’s why on November 11 prohibited legislation that would have hiked the excise tax on tobacco products by 36 percent.

Public health advocates in a conference on November 12 criticized Yushchenko and noted that tobacco products price increases are the most efficient way to reduce smoking rate.

Statistics show that approximately a third of Ukraine’s adults smoke, one of the highest rates in the world. Mykola Polischuk, former Health Minister, said: "Tobacco-related illnesses prematurely kill some 300 Ukrainians daily, said former Health Minister. The president’s veto contradicts his mottos about European integration. Today all Europe is fighting for air uncontaminated with tobacco smoke."

In 2009, previously approved increases on cigarette excise taxes Ukraine are expected to raise Hr 9 billion for the year, compared to Hr 2.7 billion in 2008.

Oleh Lyashko, a member of parliament explained: "With the new law adopted, Ukraine’s budget was expected to receive Hr 15 billion in 2010 from tobacco taxes. The president signs the law on increasing social measures including minimum wages, which needs a supplementary Hr 70 million next year. Yet he vetoes the law that can bring an extra Hr 6 billion."

Serhiy Gonchar, an anti-tobacco activist from added: "There is no logical explanation to why the president has imposed the veto. Fifty public organizations are united in asking the president to change his position." Almost all scientists suspect that Yushchenko is getting support from the tobacco companies, that’ swhy he decided to vetoes the law which increased the cigarettes prices.

In contrast to the president’s fears that cigarettes will be smuggled into Ukraine if taxes are hiked, the rise of cheap contraband cigarettes goes the other way, from Ukraine, where cigarettes prices are the lowest in Europe, to other nations. Public health scientists concluded that higher taxes are the most effective way to curb smoking, and it is the only way to make some adults quit and to prevent young kids from ever starting to smoke.

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