They argue that action to reduce smoking will bring great harm to the economy. But they greatly exaggerate the economic losses which tobacco control measures will cause and they never mention the economic costs which tobacco inflicts upon every country. Raising tobacco taxes, no matter how large the increase, has never once led to a decrease in cigarette tax revenues. This keeps tax revenues high. Some of the money saved by quitters will be spent on other goods which are also taxed.
Much tobacco is consumed in the country of production.
But in many countries much of the proceeds from cigarette sales leave the country as transnational tobacco companies' profits, directors' fees, payment for such costs as imported equipment, licences, advertising of foreign origin and packaging. Two-thirds of developing countries spend more on importing cigarettes than they gain from exporting tobacco. Thus, reducing smoking will reduce loss of foreign currency, as well as government revenues lost to smuggling. If all tobacco control policies were adopted, tobacco consumption would fall gradually over time. Most cigarette-related jobs would remain for many years, and the gradual reduction of jobs would allow workers to make an orderly transition.