taxation on tobacco products

Taxation on tobacco products involves imposing taxes to generate revenue and reduce consumption due to health risks. These taxes can be specific (fixed amount per pack) or ad valorem (a percentage of the price). Higher taxes typically increase prices, discouraging smoking and helping fund public health initiatives. Governments set these rates to balance revenue needs with public health goals, and tobacco taxes are among the most effective ways to decrease tobacco use while generating funds for related healthcare costs.