Wednesday, September 8, 2010

Andrei Smoking and Drinking is socially responsible

At least it is according to Russia's finance minister Alexei Kudrin.
'“Smoke a packet of cigarettes, and you make more resources to tackle social problems: it supports the demographic situation, develops other social services,” said Kudrin at a plenary session of the Finance Ministry’s Tax Academy.

The government’s economic chief was promoting amendments to the Russian tax code that would significantly increase “sin taxes” from 2011.

The cost of sin

If the proposal is accepted, cigarette manufacturers will have to pay 360 roubles ($12) per thousand cigarettes plus 7.5 percent of their production cost – approximately 280 roubles ($9). And from 2012 this sum will be increased a further 100 roubles ($3.30), according to the finance ministry’s website.

“Kudrin is following international practice,” said Martin Gilman, a professor at the Higher School of Economics. “If you look at countries in Europe or North America, what you’ll find is that their taxation on alcohol and cigarettes are significantly higher than in Russia. Even if Russia is not going to be moving all the way to Western European levels of taxation, it is certainly on the way.”

And here is a truthful politician because if the truth be known hammering peoples pleasures is has never been about public health but about raising revenue using which always gets the support of the neo-puritans

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