The tax on cigarettes is so high, it’s been claimed they pay more into the system than they claim out, as they die too soon. 🫣 (In Australia)
At least here in Germany this is apparently still not true as smokers in particular add a huge cost to the healthcare system due to the long-term and repeated damage. For example, once they get parts of their feet amputated from clogged arteries, most actually continue to smoke (“Ah well now it’s too late anyways”), and hence will get half a dozen such amputations over time.
Haha I had to go digging.
So it is mentioned in an Australian page about the costs of Tobacco in Australia:
https://www.tobaccoinaustralia.org.au/chapter-17-economics/17-2-the-costs-of-smoking#17.2.6
A report commissioned by the tobacco company Philip Morris, when the Czech government proposed raising cigarettes taxes in 1999, concluded that the effect of smoking on the public finance balance in the Czech Republic in 1999 was positive, an estimated net benefit of 5,815 million CZK (Czech koruny), or about US$298 million. 77 The analysis included taxes on tobacco, and health care and pension savings because of smokers’ premature death, as economic benefits of smoking, and these benefits exceeded the negative financial effects of smoking, such as increased health care costs. The report created a furore; public health advocates found the explicit assumption that premature death is beneficial morally repugnant. The controversy was described by the journalist Chana Joffe-Walt on the radio program This American Life,78 and was reported in the British Medical Journal.79 According to This American Life, Philip Morris distanced itself from the report in response to the controversy, banning its employees from citing the findings. In fact, the report’s claim that smoking was beneficial relies on its inclusion of taxes as a benefit, not any savings due to smokers’ premature deaths80 Costs associated with smoking while the smoker was still alive totalled 15,647 million CZK, 13 times more than the ‘benefits’ associated with early death. The net benefit reported in the analysis arose because the tobacco tax revenue of 20,269 million CZK was regarded as a benefit. As detailed in Section 17.1.1, taxes are not an economic cost (or benefit); they are a transfer payment. The recipient (the government) gets richer, while the taxpayer gets poorer.
So darkly amusingly it has actually been reported before, but in the Czech Republic.
Australian here, in Finland. Holy shit it seems everyone smokes like chimneys here.
Never really thought about how much smoking has declined in Aus over the last 20-40 years, but yeah coming over here has been an eye opener.
Seems to be a Europe thing, or really a rest of the world thing. It’s very rare to smell cigarettes, particularly after vaping took off.
