SABAH reveals a crucial endeavor embarked upon by the Social Security Institution and the World Health Organization: a 1-2% tax will be added to tobacco and alcohol purchases and put towards medical treatment for related illnesses.
The Social Security Institution (SGK) and the World Health Organization’s Turkish representative are in preparation to instill an additional tax on cigarettes and alcohol, considered a ‘health tax’, a practice that prevails throughout Europe.
AN ADJUSTMENT OF PRICES
If the project, intended to be completed for the New Year, is implemented, a 1-2% share of tobacco and alcohol sales revenue will be transferred to the Social Security Institute, which will establish a fund to be used for medical treatment. In order to allow for the share allotment, cigarette and alcohol prices may face adjustments.
LUNG CANCER AND HEART PROBLEMS
The fund to be established by the SGK will be used for treatment of tobacco and alcohol related illnesses primarily including lung cancer, throat cancer and cardiovascular disease. A separate fund will also be established for campaigns to quit smoking. The project is intended to offer some state relief as approximately five billion Turkish liras are spent annually on treatment for tobacco and alcohol-related diseases.
According to Social Security Institution Chairman Emin Zararsız, who noted that they hope to complete the efforts put forth with the World Health Organization by the end of this year in order for the new tax practice to go into effect; “The plan is to obtain one to two percentage of the revenue from each pack of cigarette or bottle of alcohol sold. This system is already in practice in Europe. In order to realize this practice, adjustments may be made to the price of tobacco and alcohol products. This practice will provide significant financial aid to tackle the health problems derived from the product’s consumption, especially tobacco use. We are working alongside WHO specialists and have to first establish the technical infrastructure. How we deduce the price arrangement will be significant. For example, will the Ministry of Finance deduce the percentage from the taxes received or will an additional tax be issued? Ultimately, the tax incurred by the state on tobacco and alcohol products is a significant source of revenue. We hope to complete the project by 2011.”
