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wizzer50 | 19:42 Mon 09th Jul 2007 | Business
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I would like to know if anyone can inform me of the total amount of tax revenue collected by the goverment on all tobbaco sales as opposed to the amount spent on the NHS connected to smoking realated deseases.
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In 2006/07 revenue for the Government from tobacco products is estimated as �9.3 billion, with estimates for the cost to the NHS from smoking-related diseases ranging from �1.7 to �1.9 billion a year.
It's more complicated than that.

You have to remember too that saving smokers from an early death doesn't actually save the NHS money because they end up treating those who stop for geriactric illnesses later on.

You also have to remember that people dying in their working years costs the government money in lost taxation revenue but people dying just before retirement saves them money in pensions.

So you can't just do a simplistic analysis based on those two figures.

However last time I saw any proper work on this ( I think it was Durham University) the figures still came out with the Government being financially better off with smokers.

Obviously though health policy is not dictated by economics -otherwise they'd legalise and tax cocaine!
You must also not forget corporation tax and income tax revenues from the tobacco industry to the Government and factor in unemployment benefit and associated payments were the industry to reduce/disappear.

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