A recent report from France’s Observatory of Drugs and Addiction Trends (OFDT) has shed light on the financial impact of alcohol and tobacco use on the country’s public finances. Contrary to the belief that the taxes on legal drugs benefit the state, the report found that the cost to the government exceeds the revenue generated from these products. The analysis focused on data from 2019 to gauge the extent of the problem in the country.
In 2019, tobacco smoking caused over 73,000 deaths, while alcohol consumption led to more than 41,000 deaths. The report estimated the “social cost” of tobacco smoking to be €156 billion and €102 billion for alcohol use. Additionally, illicit drug use incurred a cost of €7.7 billion to the state. These estimates considered the economic value of lives lost due to drug use, the reduced quality of life for patients suffering from cancers caused by these substances, and the state’s spending on prevention and care. The savings on pensions for individuals who lose their lives due to drug, alcohol, and tobacco use were subtracted from the overall social cost.
Consequently, the report debunks the notion that alcohol and tobacco taxes benefit the state. The French government collected €4 billion and €13 billion in taxes on alcohol and tobacco, respectively. However, these figures fall short when compared to the expenses incurred for treating alcohol and tobacco abuse. Pierre Kopp, a professor of economics at the University of Paris 1 Panthéon Sorbonne, who authored the report, emphasized that drugs actually have a detrimental effect on the community.
Nonetheless, the report acknowledged the decline in the number of deaths caused by alcohol, tobacco, and illicit drugs between 2010 and 2019. This decrease reflects the positive impact of public policies aimed at reducing tobacco consumption, enhancing care for illicit drug users, and increasing awareness of the dangers associated with alcohol use. While progress has been made, the report underscores the need for continued efforts to address the significant social cost of drug use in France.
SOURCE: Ref Image from Bryte FM
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