Iranians buy 100 trillion rials ($900 million) worth of cigarettes annually and spend 350 trillion rials ($3.18 billion) on treatment of smoking-related diseases, the associate dean of Tehran University of Medical Sciences said.
“Although Iran is a member of the World Health Organization's Framework Convention on Tobacco Control for 12 years now, it fails to implement some of its articles, including the ban on selling tobacco products to persons under the age of 18,” Abdolrahman Rostamian was also quoted as saying by Mehr News Agency.
Smoking is to blame for 90% of cancers, including lung cancer, and 25% of deaths caused by coronary heart diseases.
Noting that over the past 10 years, tobacco consumption has increased from 2,000 tons to 15,000 tons, Rostamian said the government and parliament need to take effective measures on raising tax on harmful products like cigarettes.
Article 6 of FCTC mandates effective taxes on tobacco products, which lead to higher prices and not only help reduce consumption and demand, but also cut the governments’ healthcare costs associated with tobacco consumption. It recommends a big increase in cigarette tax to reduce consumption.
“Revenues gained on tobacco tax should be spent on preventing tobacco use, particularly among students,” he said.
Latest data released by the Central Bank of Iran show the government earned 3.6 trillion rials ($32 million) from cigarette tax in the first seven months of the current Iranian year (March 21-Oct. 22, 2018). The figure indicates a rise of 34% compared with the same period of last year.
The objective set in the budget law for the current year’s revenues from cigarette tax is 5.3 trillion rials ($47 million).
The parliament increased cigarette tax in the current fiscal year (March 2018-19). The duty on retail prices of locally and jointly produced Iranian cigarettes increased by 75 rials (0.06 cents) and 150 rials (0.31 cents) respectively, tax on local products with international brand names increased by 250 rials (0.13 cents), while 600 rials (0.53 cents) was added to the retail price of each stick of imported cigarettes.
The Ministry of Industries, Mining and Trade's latest report shows no cigarettes were imported into Iran during the first half of the current fiscal year (March 21-Sept. 22) while 1.42 billion cigarettes were imported during last year's corresponding period.
The decision to halt import does not mean no foreign cigarettes entered Iran, as smuggling is rife in the country.
An estimated 32.5 billion cigarettes were smoked in Iran during the first half of the current year, compared with 27.5 billion year-on-year.
Domestic cigarette production meets more than 90% of demand in Iran.
