Do specific taxes really provide the result intended? In recent years, you probably have heard the argument that tobacco taxes should be raised in order to reduce smoking. Since smoking is bad for you, if you choose to smoke, society is going to make you pay for doing so by levying a greater burden on you through a stiff tobacco tax. Discuss the economic impact of imposing such a policy stance. In doing so, identify whether higher tobacco taxes really reduce the consumption of tobacco and make society better off. Or, do higher taxes just mean that people keep on smoking and spend more of their income on tobacco and less on other goods and services?
Yes, these types of specific taxes really provide the result intended.
The economic impact of imposing such a policy stance for maintaining the nation's health because when the peoples of the nation were healthy the economic strength and the wealth of the country will going to strong . Any country's Economy runs with it citizens and when it's citizen is unhealthy how the economy will going to strong.
Higher tobacco taxes obviously reduces it's consumption because any average people will not going to consume more of it as he consume earlier before higher taxes ,because higher taxes increases price of tobacco and society will going to better off.government impose such taxes with the objective .i.e. welfare of the country and as well as for society.
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