Various government ministries are in a war of nerves over an additional increase in the price of cigarettes. Last year the government decided to increase the cost of a pack of cigarettes in two separate moves to an average of W1,000 higher, and at the end of 2004 raised the price by W500. If things go according to plan, there is supposed to be another W500 increase in July. Now, however, the Ministry of Finance and Economy is trying to keep that from happening, saying it is worried about rising consumer prices. Part of the money from the increase is supposed to go to regional government finances, and so the Ministry of Health and Welfare is also part of the confrontation. The increase is about promoting the country's health, and so it does not look good to have ministries fighting over who gets a bigger rice bowl.
The number of adults who smoke shrank by 4.7 percent after the last increase, so it has been proven that increasing the price of cigarettes has a considerable effect on reducing the smoking rate. Youth in particular are said to respond three times more sensitively to price increases. The military has long been a place where men learn to smoke, but now there will be limits on the duty free cigarettes available to conscripts in order to reduce smoking in the ranks. That is a well-based policy.
The evil effects of smoking need no lengthy explanation. Korea has the highest ratio of smokers of any nation in the Organisation for Economic Co-Operation and Development (OECD). Some 40,000 Koreans die yearly of smoking-related illnesses, and the estimate is that smoking incurs a socioeconomic loss of W10 trillion annually. Raising the cost of cigarettes to reduce smoking is inevitable and it is the global trend.
In addition, the government must not think of the money to be earned through the increase as extra funds it gets to do what it wants with in making up the difference in financial deficits. The right thing to do with money earned by selling cigarettes is to treat and prevent diseases associated with smoking and for wide-ranging anti-smoking education. If the funds are not used legitimately the government will be criticized for profiteering at the expense of the people's health.
The Hankyoreh, 18 March 2005.
[Translations by Seoul Selection (PMS)]
[Editorial] Cigarette Price Increase Inevitable |
