Majority of Kenyans Back Taxation of Tobacco Products

Source from:  Xinhua  06/16/2014

More than 80 percent of Kenyans support taxation on tobacco products to help curb tobacco related illness, a survey showed Wednesday in Nairobi.

An opinion poll conducted by IPsos Synovate says tobacco use is not only a chief contributor to non-communicable diseases and deaths, but also a negatively impact on economic development in the country.

The survey commissioned by the International Institute for Legislative Affairs showed that out of those interviewed, 70 percent admitted to knowing that cigarettes should not be sold to persons under the age of 18 years.

"Apparently large sums of money go into treating tobacco related illnesses which are in the actual sense preventable hence depleting government and individual savings respectively," says the study.

The study comes after Kenya announced plans to increase taxes that are levied on tobacco products.

Health Cabinet Secretary James Macharia said that the move will help to deter use of tobacco and is not primarily a revenue raising measure.

"Our estimates indicate that health and socioeconomic costs of tobacco use is three times the income the industry generates for the country," Macharia said during commemorations to mark the World No Tobacco Day on May 30.

He noted that studies have indicated that a ten percent increase in the price of tobacco results in an eight percent reduction in its consumption.

"In addition the tax increase will generate revenue for Kenya which should be allocated for tobacco control," Macharia said. 

According to the survey conducted between April 28 to May 7, Coast County recorded the highest support to the introduction of taxes on tobacco products at 90 percent while Nairobi County recorded the lowest at 65 percent.

A majority of male and female respondents living in both urban and rural areas were in favor of an increase in taxation on tobacco products.

Kenya falls below the 70 percent tobacco tax threshold as recommended by World Health Organization (WHO). Research shows a correlation between prolonged lives with increased taxation on tobacco products.

Less than half of the respondents knew about laws on tobacco use. Only 10 percent were well-informed that cigarettes should not be sold as stick, but rather in a packet.

Statistics indicate a decline in real cigarette tax revenue even as consumption increases. Cigarette tax yield share has fallen from 35 percent to 30 percent between 2000 and 2008

The reduction in real price of cigarettes coupled with increased consumer incomes has made cigarettes more affordable and therefore accessible even to the youth.

Moreover cigarettes in Kenya are still sold in single sticks even though this is a violation of the Tobacco Control Act.

The study recommends that new devolved health sector offers a great opportunity for future endeavors of tobacco regulation. County government can exploit taxation opportunity to inhibit tobacco use as well as raise revenue for the county.

"The system also provide for a close monitoring and evaluation of tobacco use at the county level as well effective implementation of the Tobacco Control Act 2007," it recommends. Enditem