DUBAI // Doubling the tax on cigarettes will lead to a rise in illicit trade and young people falling prey to smuggling gangs, experts have warned.
As GCC finance ministers deliberate on a 100 per cent increase in duty on tobacco products, a report was published today showing the move would cause the growth of an illicit trade police and Customs could not control.
And the paper says there is no evidence that doubling the duty will significantly cut the number of people who smoked.
The World Health Organisation (WHO) has said a 10 per cent price increase in tobacco tax in a high-income country would result in a 4 per cent reduction in smoking levels.
But Maj Khalid Al Hassan, head of the anti-forgery section of the economic crimes division at Dubai Police and one of the publishers of the paper, said the reduction in the GCC would be far lower than 4 per cent.
"The UAE is a country where the majority of the population has a high income so they don't care about a price increase," Maj Al Hassan said.
"The price of cigarettes is not expensive when compared with other areas of the world.
"A price increase may affect some nationalities with a low income but, for UAE locals and expatriates, they don't care. I don't think tax would be the solution to problem."
It is estimated that doubling the tax would increase the cost of a packet of cigarettes by 50 per cent.
In October last year health authorities and smokers closely watched a GCC finance ministers' meeting in Riyadh, Saudi Arabia, where a regional tobacco tax was debated after calls by healthcare professionals in the GCC and WHO. But no decision was reached.
The GCC first increased its tariff on tobacco imports in 1995 by 100 per cent. In the same year, the council voted to reduce nicotine content in tobacco products, and banned production of them in any GCC state.
In 2001, health ministers asked the council to increase the tariff by another 150 per cent.
The request was rejected and the council agreed to focus on other measures to combat smoking.
In the report released today, experts said a sharp rise in cigarette prices did not have any effect in six countries including Japan, Singapore and Canada.
"You have to consider that a price increase will invite people to trade in counterfeiting," said Omar Obeidat, co-publisher and partner at the Dubai law firm Al Tamimi and Co.
"If you add on top of that the issue of smuggling, which is a by-product sometimes of tax increases, you're going to have a double impact of counterfeiting increases plus smuggling increases."
Maj Al Hassan called for a phased increase on tobacco duty over five years, as was the case with the 1995 GCC decision.
A gradual approach would give Customs more time to put in place technology to help disrupt the flow of illicit cigarettes and provide valuable data to analyse smuggling trends, he said.
"If you raise tax illicit trade will begin and governments must then spend big sums of money to combat that illicit trade," Maj Al Hassan said.
"The UAE would require more resources to handle the knock-on effects at border controls."
The report says illicit trade creates uncontrolled and unaccountable markets, resulting in children being able to obtain tobacco more easily and the livelihoods of tobacco retailers are threatened.
The authors called on authorities to take the lead on educating the public against smoking and asked for more measures to protect brands and local businesses from counterfeiting.
amustafa@thenational.ae
Moon Music
Artist: Coldplay
Label: Parlophone/Atlantic
Number of tracks: 10
Rating: 3/5
UAE currency: the story behind the money in your pockets
Tips to avoid getting scammed
1) Beware of cheques presented late on Thursday
2) Visit an RTA centre to change registration only after receiving payment
3) Be aware of people asking to test drive the car alone
4) Try not to close the sale at night
5) Don't be rushed into a sale
6) Call 901 if you see any suspicious behaviour
COMPANY PROFILE
Initial investment: Undisclosed
Investment stage: Series A
Investors: Core42
Current number of staff: 47
Company profile
Name: Infinite8
Based: Dubai
Launch year: 2017
Number of employees: 90
Sector: Online gaming industry
Funding: $1.2m from a UAE angel investor
Iftar programme at the Sheikh Mohammed Centre for Cultural Understanding
Established in 1998, the Sheikh Mohammed Centre for Cultural Understanding was created with a vision to teach residents about the traditions and customs of the UAE. Its motto is ‘open doors, open minds’. All year-round, visitors can sign up for a traditional Emirati breakfast, lunch or dinner meal, as well as a range of walking tours, including ones to sites such as the Jumeirah Mosque or Al Fahidi Historical Neighbourhood.
Every year during Ramadan, an iftar programme is rolled out. This allows guests to break their fast with the centre’s presenters, visit a nearby mosque and observe their guides while they pray. These events last for about two hours and are open to the public, or can be booked for a private event.
Until the end of Ramadan, the iftar events take place from 7pm until 9pm, from Saturday to Thursday. Advanced booking is required.
For more details, email openminds@cultures.ae or visit www.cultures.ae
'How To Build A Boat'
Jonathan Gornall, Simon & Schuster
The bio
Favourite book: The Alchemist by Paulo Coelho
Favourite travel destination: Maldives and south of France
Favourite pastime: Family and friends, meditation, discovering new cuisines
Favourite Movie: Joker (2019). I didn’t like it while I was watching it but then afterwards I loved it. I loved the psychology behind it.
Favourite Author: My father for sure
Favourite Artist: Damien Hurst
RoboCop%3A%20Rogue%20City
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'Manmarziyaan' (Colour Yellow Productions, Phantom Films)
Director: Anurag Kashyap
Cast: Abhishek Bachchan, Taapsee Pannu, Vicky Kaushal
Rating: 3.5/5
COMPANY PROFILE
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Total funding: Self funded
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Nepotism is the name of the game
Salman Khan’s father, Salim Khan, is one of Bollywood’s most legendary screenwriters. Through his partnership with co-writer Javed Akhtar, Salim is credited with having paved the path for the Indian film industry’s blockbuster format in the 1970s. Something his son now rules the roost of. More importantly, the Salim-Javed duo also created the persona of the “angry young man” for Bollywood megastar Amitabh Bachchan in the 1970s, reflecting the angst of the average Indian. In choosing to be the ordinary man’s “hero” as opposed to a thespian in new Bollywood, Salman Khan remains tightly linked to his father’s oeuvre. Thanks dad.
The specs
Engine: Two permanent-magnet synchronous AC motors
Transmission: two-speed
Power: 671hp
Torque: 849Nm
Range: 456km
Price: from Dh437,900
On sale: now
ESSENTIALS
The flights
Emirates flies direct from Dubai to Rio de Janeiro from Dh7,000 return including taxes. Avianca fliles from Rio to Cusco via Lima from $399 (Dhxx) return including taxes.
The trip
From US$1,830 per deluxe cabin, twin share, for the one-night Spirit of the Water itinerary and US$4,630 per deluxe cabin for the Peruvian Highlands itinerary, inclusive of meals, and beverages. Surcharges apply for some excursions.
The specs
Engine: 3.0-litre six-cylinder turbo
Power: 398hp from 5,250rpm
Torque: 580Nm at 1,900-4,800rpm
Transmission: Eight-speed auto
Fuel economy, combined: 6.5L/100km
On sale: December
Price: From Dh330,000 (estimate)
8 traditional Jamaican dishes to try at Kingston 21
- Trench Town Rock: Jamaican-style curry goat served in a pastry basket with a carrot and potato garnish
- Rock Steady Jerk Chicken: chicken marinated for 24 hours and slow-cooked on the grill
- Mento Oxtail: flavoured oxtail stewed for five hours with herbs
- Ackee and salt fish: the national dish of Jamaica makes for a hearty breakfast
- Jamaican porridge: another breakfast favourite, can be made with peanut, cornmeal, banana and plantain
- Jamaican beef patty: a pastry with ground beef filling
- Hellshire Pon di Beach: Fresh fish with pickles
- Out of Many: traditional sweet potato pudding
How to protect yourself when air quality drops
Install an air filter in your home.
Close your windows and turn on the AC.
Shower or bath after being outside.
Wear a face mask.
Stay indoors when conditions are particularly poor.
If driving, turn your engine off when stationary.
COMPANY PROFILE
Name: HyperSpace
Started: 2020
Founders: Alexander Heller, Rama Allen and Desi Gonzalez
Based: Dubai, UAE
Sector: Entertainment
Number of staff: 210
Investment raised: $75 million from investors including Galaxy Interactive, Riyadh Season, Sega Ventures and Apis Venture Partners
FA%20Cup%20semi-final%20draw
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COMPANY%20PROFILE
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Joker: Folie a Deux
Starring: Joaquin Phoenix, Lady Gaga, Brendan Gleeson
Director: Todd Phillips
Rating: 2/5
Jigra
Starring: Alia Bhatt, Vedang Raina, Manoj Pahwa, Harsh Singh
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Company%20Profile
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Company%20Profile
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