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Most countries use a combination of excise and value added taxes in order to keep up with inflation. Taxation such as this also helps to control the reduction of price on tobacco products. In most industrialized countries, taxes on tobacco are at least two thirds of the retail price. The U S, however, levies a 30% tax on tobacco products. (Chaloupka, 2001). The Framework Convention on Tobacco Control (FCTC) recommends tying the price of tobacco to the rate of inflation and banning duty free tobacco sales.
Structural unemployment most closely relates and affects the tobacco industry today. This is also in large part due to the increasing number of foreign tobacco producers...
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