Question

explain the economic rationale behind heavy taxes on tobacco in Lesotho

Answer 1

Lesotho is an African country encircled by South Africa.

There has been significant increase in rise of cigarette consumption in Africa.

Also the cigarette consumption in Lesotho has increased by 50% in last 15 yrs. Main reason being aggressive marketing techniques. These companies target the vulnerable to increase profits. The increase in death and diseases related to tobacco consumption is increasing sharply. The best way to keep this in control is to apply heavy tax on it so as to keep control on its use by vulnerable.

Answer 2

Heavy taxes on tobacco in Lesotho is included in the list of sin tax. Tobacco taxes are awell known strategy tocontrol and abolish smoking, specifically among teenagers and low-income group people. 

Considering the high health costs of tobacco use, reducing smoking rates in many cases will be leading to substantial health gains.  

Moreover, youth and lower-income people would benefit disproportionately from the smoking devoid improved health, which is the fiscal rationale behind this hish tax policy.