Cheapest Cigarettes

Esse cigarettes are one of the brands that are local to Korea.
Esse cigarettes are one of the brands that are local to Korea.

 

The price of tobacco in Korea, which has not been raised for 10 years, is lower than that of 40 other major countries around the world, along with the ratio of taxes to the price.

According to data from the WHO and the Korea Institute of Public Finance, the price of the most popular brand of cigarettes sold in Korea is approximately US$2.20, which was the lowest among 41 countries as of 2012 and 2013. Norway, where the price amounts to US$14.50, topped the list.

Norway was followed by Australia (US$14.40), Ireland (US$11.90), New Zealand (US$11.60), and Britain (US$10.80). Mexico (US$3.00), Bulgaria (US$3.10), and Lithuania (US$3.20) were right ahead of Korea, which is the only country where a pack of cigarettes can be bought for less than US$3.00.

In addition, the ratio of taxes to price is just 62 percent. The taxes include a tobacco tax, regional education tax, value-added tax, waste charge, and national health promotion charge.

Such a low price and tax ratio can be attributed to the National Assembly’s and government’s historically lukewarm stance of avoiding the political burdens of raising consumer prices, as well as specific duties applied to the products.

Under the circumstances, an increasing number of people are claiming that the cigarette price should be raised for the first time in a decade, with the ratio of smoking adult males reaching as high as 49 percent and the government suffering from a chronic lack of tax revenue.

The government agrees with the opinion, too. The Ministry of Health & Welfare has recently announced that it would raise the cigarette price. The Ministry of Strategy & Finance, which is in charge of consumer prices and tax income management, is sharing the same stance, too.

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