False Economy – Tobacco Taxes

Blog, Taxation, Les Routledge

In its recent budget, New Brunswick has elected to increase the excise tax on tobacco.

I wonder have they conducted a cost-benefit assessment to determine if the action will produce a net increase of revenues after the increased costs of policing, courts and jails are included in the analysis?

If one accepts that there was a need to increase tax revenues, would it not make more sense to levy an excise tax on additional luxury products such as snacks and pop which have a lower probability of being subject to illicit trade instead of increasing the already punitive taxes on alcohol or tobacco?