EKIP– Expert Club for Economics and Politics A Different Opinion
According to data from the European Commission, Bulgaria ranks first in the number of smokers in the European Union. Despite a slight decline in recent years, about 40% of the population still uses tobacco products. The socio-health and economic costs associated with their use are increasing annually, despite attempts to limit them through excise taxes and bans.
The lack of a clear and sustainable policy on the part of institutions regarding the limitation of the negative effects of smoking leads to fiscal costs in terms of the treatment of diseases related to the use of such products. There are opportunities to reduce the harmful effects of smoking, which are associated with the use of innovative tobacco products, the health effects of which have yet to be researched and verified.
The aim of this report is to track policies to reduce the harm of smoking in Europe and globally and to propose solutions to tackle this harmful habit for society.
The main conclusions of the report are as follows:
- The economic effects (direct and indirect) of tobacco use, calculated in health and social costs worldwide, reach $1,850 billion annually;
- Bulgaria has one of the most conservative laws in the European Union regarding the sale and use of tobacco products, however, some of the bans on the use of tobacco products continue to be violated;
- Bulgaria is among the countries with the lowest excise tax rate for tobacco products in the European Union. Despite the demands of various stakeholders, the last increase in the excise tax on conventional "combustible" cigarettes was in 2018;
- The differentiated tax treatment of STIs compared to conventional cigarettes is key while the process of their health verification is underway;
- Bulgaria lacks policies to reduce tobacco harm related to switching from conventional to heated tobacco products, following the example of other countries in the European Community;
Recommendations and risks:
- The increase in the excise tax on NTIs is not supported by sufficient medical and economic arguments - the idea of excise taxes is to limit the use of harmful goods. After a thorough literature review, there is not enough information and indications that this type of product is as harmful to health as conventional cigarettes, but rather the majority of data is that NTIs form significantly less harmful and potentially harmful substances compared to cigarettes;
- A more in-depth analysis of the benefits and risks of STI regulation is needed;
- In-depth research is needed on the benefits and costs of the existing regulatory framework, both for traditional and innovative tobacco products;
- Health-economic models must be developed that can quantify the economic and health effects of switching from traditional to innovative tobacco products.
