Cigarette City goes up in smoke

First a ban on smoking in public places, next a hike on the cost of a packet of cigarettes: the UAE is in danger of losing its reputation as a smoker’s paradise.

Just a year ago the idea that smokers would be restricted on where they sparked up, or that they would have to pay more than giveaway prices would have been unthinkable. Now that double whammy is on the cards. A new federal anti-smoking law is expected to be passed at the end of the month, with a public smoking ban in place across the emirates by June.

The National says the average price for a packet of 20 cigarettes is Dh6 (US$1.60). In the UK, it is the equivalent of about Dh42 and in the US, less than Dh20. No word on the UAE price hike; it will be interesting to see how tough the government wants to be. Taking a pack of smokes to Dh20 would only make them cheap, rather than ridiculously cheap. Dh50 would really send a message. But would this add to UAE inflation?

Smoking is accepted to be a ‘bad thing’, but, a hard habit to break, price rises can be seen as less of a deterrent and more of a straight tax on addicts. It will be interesting to hear what the government plans to do with this extra revenue.