Quote by MidsCouple24
Then perhaps increasing the amount of products that are bad for you where VAT is payable and decreasing the amount of products that are good for you where you currently pay VAT would be a start.
As for the tobacco tax revenue thing, I can only quote what I read on the internet about the tax and clearly that is wrong, but if you do the maths yourself it works roughly like this
average smoker 20 a day,
that is 5-6 thousand a year
tax on ciggies is over 70%
10 million smokers
That means that the revenue from smoking tax still outweighs the cost of treating smokers by the NHS by 10s of millions
What a load of nonsense. Lets take the £6000 per annum figure you mentioned. Tax that at 70% and you get a revenue of £4200. Multiply that by the estimated 10 million smokers and you get a revenue of £42,000,000,000 or £42 billion.
But that is not a true reflection at any stage of the calculation.
If the average cost of 20 cigarettes is £7 and a person smokes 20 a day that is £7 x 7 = £49 per week. Multiply that by 52 for the weeks in the year and you reach a figure of £2548.
If tax revenue is 70% this example would generate a tax revenue of per annum.
Multiply that by the estimated 10 million smokers and you reach a figure of billion which is around 40% of the total your figures suggest.
If your going to start bandying figures about then at least make sure they make sense!
Of course these figures are reduced further if you account for the fact that the average smoker smokes 12 cigarettes per day. In this case the final figure would be £10,701,600,000, a quarter of your figures.
Yes it's true that this figure of £10 billion is higher than the direct cost of smoking on the NHS today, but that balance is slowly tipping the other way. These figures are based on a much reduced number of smokers than historical averages. For example in 1974 45% of adults smoked, whereas today that figure is 20%. Now that means that all those ex smokers are not contributing to the tobacco taxation, but they will possibly be having treatment for smoking related illness.