Since the sin tax was introduced nearly two years ago, the 85 per cent plummet in sales of tobacco products has been nothing short of astonishing. The massive decline in sales shows the power of such taxes. According to Wam, the 100 per cent excise tax on cigarettes slashed the value of Abu Dhabi's tobacco trade from Dh410 million to Dh62.4m last year. Although retailers have absorbed some of the cost, top cigarette brands now sell for around Dh21 a pack, up from Dh11 in 2017. The message is clear: when harmful products become prohibitively expensive, people do kick the habit. The law was designed to drive down cigarette consumption and clearly, it has worked.
According to the World Health Organisation, raising tobacco prices is one of the most effective ways to encourage smokers to quit. In the UAE, that is a valuable mission. Smoking killed more than 2,900 people in the country in 2016 and cost the nation about $569 million in lost productivity and healthcare costs, according to research by Tobacco Atlas. Hospitals across the UAE are forced to devote resources to treating smoking-related conditions, from chronic obstructive pulmonary disease to lung cancer. To keep second-hand smoke out of our children's lungs and cigarette butts off our streets, this action is long overdue in the UAE.
However, there is still plenty of work to be done. There are concerns that excise taxes on cigarettes push consumers towards cheaper brands and even illicit cigarettes. That is why the UAE’s sin tax has been accompanied by a crackdown on the import of illegal cigarettes. Meanwhile, we need to debunk myths about smoking dokha and shisha, which are at least as harmful as cigarettes, although many do not realise it. With astute policymaking, the UAE is taking necessary action on cigarette smoking. And as this week’s figures reveal, it is already paying dividends.
