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It is undisputed that smoking causes high health costs. What is less clear is how high the economic costs are compared to the benefits. A federal estimate helps proponents.
Tobacco advertising should no longer reach minors: That requires an initiative that will be voted on in February. The opponents warn that this restriction would cause “great economic damage”. Proponents, on the other hand, believe that smoking harms the economy far more than advertising bans – and they receive support from the federal government for their arguments. This although the Federal Council is against the initiative.
The Federal Office of Public Health (FOPH) estimates the overall economic effect of the initiative at several 100 million francs per year. So that would be the benefits of the initiative minus the economic costs.
The following factors and assumptions were primarily included in the estimate: If the initiative were voted in, regulatory costs would increase and corporate profits would decrease. At the same time, however, health costs would also decline because fewer Swiss people would start smoking. In addition, there would be lower productivity losses due to smoking breaks in the workplace.
Opponents warn of endangered jobs
Middle National Councilor Philipp Kutter, who sits on the No Committee, criticizes: “The federal government has calculated the economic costs too low, for example in relation to tax revenue.” The amount of possible tax losses is controversial, but it is clear that one point was not included in the estimate: sponsorship by the tobacco companies. Stricter rules would at least partially prevent them.
On request, the BAG will inform you that no figures are available on the current scope of sponsorship. Loss of advertising revenue, on the other hand, is factored into the estimate.
Opponents of the initiative are also warning of job losses in the tobacco industry. Flavia Wasserfallen, who sits on the initiative committee, argues against this: “All the developments that point towards a lower smoking rate have shown that you can not only save costs, but also create new jobs.”
Around 4,600 jobs in Switzerland depend on the production and sale of tobacco products. the authors a study, which the BAG has commissioned, expect that after the introduction of stricter advertising bans, many jobs would be shifted to other industries. This is because the money would be spent elsewhere instead of on cigarettes.
The alternative proposal also wants to restrict advertising
The initiative is not the only way to restrict tobacco advertising. Parliament has passed a counter-draft that will come into force next year. For example, this would mean that companies would no longer be allowed to advertise with posters, but would continue to place advertisements in the press.
The federal government expects that the alternative proposal will also have a positive economic effect. This is estimated at 200 to 500 million francs per year – and according to the BAG would be lower than for the initiative.