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Does the government profit from tobacco sales vs NHS costs? Watch

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    As per the title, does the government make more from the sales of tobacco products than the costs incurred from NHS treatments?
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    (Original post by Final Fantasy)
    As per the title, does the government make more from the sales of tobacco products than the costs incurred from NHS treatments?
    No, apparently it's 77% of the cost that sales make. The government needs to do much more imo.
    http://ash.org.uk/information/facts-...ts/fact-sheets
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    (Original post by claireestelle)
    No, apparently it's 77% of the cost that sales make. The government needs to do much more imo.
    http://ash.org.uk/information/facts-...ts/fact-sheets
    Couldn't get the page to load, here's a cached version if anyone's having issues loading it: http://webcache.googleusercontent.co...trip=1&vwsrc=0

    Gotta get ready for work, will check back later!
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    Also I'm not sure Ash has allowed for the economic savings from having smokers die early (ie reduced cost of state pension).

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    (Original post by claireestelle)
    No, apparently it's 77% of the cost that sales make. The government needs to do much more imo.
    http://ash.org.uk/information/facts-...ts/fact-sheets
    I don't see how that's a no. 77% of the retail price is tax which results in £12 billion being received in direct tax revenues. (and this does not account for IT paid by those that work in the industry)

    All estimates for NHS expenditure on smoking-related treatments falls far below that £12 bil figure so I would say that yes, the Gov profits.
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    (Original post by Kvothe the arcane)
    I don't see how that's a no. 77% of the retail price is tax which results in £12 billion being received in direct tax revenues. (and this does not account for IT paid by those that work in the industry)

    All estimates for NHS expenditure on smoking-related treatments falls far below that £12 bil figure so I would say that yes, the Gov profits.
    Sorry had a bad dyslexia mess up there. Does treatments include deaths directly related to smoking as I m never sure if stats include that ( or if that's too subjective for them to record)?
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    (Original post by jneill)
    Also I'm not sure Ash has allowed for the economic savings from having smokers die early (ie reduced cost of state pension).

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    That's a good point, the government kept 20 years worth state pension that they didn't have to give my dad/us.
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    (Original post by claireestelle)
    Sorry had a bad dyslexia mess up there. Does treatments include deaths directly related to smoking as I m never sure if stats include that ( or if that's too subjective for them to record)?
    NO need. If anything, early death means a reduction in cost. What do you mean?
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    (Original post by Kvothe the arcane)
    NO need. If anything, early death means a reduction in cost. What do you mean?
    I meant in the cases where they have to pay for post morteums and the like, for example they were a smoker with no diagnosed pre existing conditions and died.
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    It's not something easy to calculate as you have so many factors: direct contributions from tobacco duty, corporation tax on tobacco companies, the effects of the additional employment and resultant tax revenue due to their staff, similar for the retail sector, extra consumer spending due to buying other goods whilst shopping for cigarettes, NHS costs, costs of anti-smoking campaigns, social costs of e.g. family members looking after cancer patients, reduced payouts in pensions but increased payouts in disability benefits, lower economic activity due to workers becoming ill or dying etc. But the consensus is that economically it's clearly a net positive for the government - the question is how much.
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    (Original post by Saoirse:3)
    It's not something easy to calculate as you have so many factors: direct contributions from tobacco duty, corporation tax on tobacco companies, the effects of the additional employment and resultant tax revenue due to their staff, similar for the retail sector, extra consumer spending due to buying other goods whilst shopping for cigarettes, NHS costs, costs of anti-smoking campaigns, social costs of e.g. family members looking after cancer patients, reduced payouts in pensions but increased payouts in disability benefits, lower economic activity due to workers becoming ill or dying etc. But the consensus is that economically it's clearly a net positive for the government - the question is how much.
    A PhD's worth..

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    Last time I checked the figures tobacco income was a massive net contributor to the UK coffers and it more thancovered smoking related illness by several billion, that being said that was half a decde ago so who knows now. As Sir Humphrey said we should applaud smokers for willingly laying down their lives for the good of the country
 
 
 
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