RIYADH — The recent step taken by tobacco companies to increase the price of a pack of cigarette to SR9 has caused widespread anger and resentment among smokers, legislators and health professionals, Al-Watan Arabic daily reported. Reflecting the general uproar caused by tobacco companies' 12.5% price increase, economists urged the concerned government authorities to intervene. Well-known Saudi economist, Fadhl Abu Al-Ainain, said, “The increase in prices has three dimensions. The first dimension is the abhorrent greed of the tobacco industry and their exploitation of smokers' unfortunate addiction to their product. The second is the obvious lack of appropriate price monitoring of these products – especially given the health and environmental risks involved. The third and last dimension are vague government laws regulating the sale of tobacco." “Increased taxation is traditionally the way developed economies deal with the health complications caused by smoking. The cost of treating the many diseases caused by smoking is a major strain on any nation's health infrastructure," he added. Other economists also said the government must levy heavier taxes to encourage people to give up smoking. Health professionals said they would like to see draconian price increases to combat the menace of smoking. Some experts believe prices should be raised by as much as 300% in order encourage smokers to quit the bad habit. The legal repercussions of the recent price increase are also raising eyebrows among industry watchers. “Had the government levied taxes on the tobacco companies, the price increase would have been justified. However this was not the case hence their pricing decision constitutes a flagrant violation of the Kingdom's laws," said Abdul Hameed Al-Amri, a member of the Saudi Economists Society. — SG
