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...While The U.S. Remains The Land Of The Cheap Cigarette


Economic Trends

...WHILE THE U.S. REMAINS THE LAND OF THE CHEAP CIGARETTE

While Canada has enacted one of the world's strongest antismoking programs, it is hardly alone in pushing up the price of cigarettes. In U.S. dollars at current exchange rates, the price of a pack of smokes in countries such as Ireland, Britain, Denmark, and Norway ranges from $3.02 in Ireland to $4.95 in Norway. In all of these countries, as in most European nations, taxes account for a least 70% of the retail price of cigarettes.

By contrast, the current average price of a pack of cigarettes in the U.S. is about $1.70, of which about 28% reflects federal, state, and local taxes. According to World Health Organization estimates, per capita consumption of cigarettes in the U. S. in 1989 was 2,200. In the countries listed above, it ranged from 1,800 in Ireland to just 700 in Norway.GENE KORETZ


Steve Ballmer, Power Forward
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