Faced with the extensive damage caused by the latest hurricanes, many tobacco growers are now turning to more modern drying sheds, covered with sheet metal roofs and artificially ventilated

Specific Duty per cigarette = 244.78 / 1000 = 0.24478 Specific Duty per pack = 0.24478 x 20 = 4.8956 Total Tobacco Duty : add the ad valorem duty and the specific duty to find the total tobacco duty: Total Tobacco Duty = 2.06 + 4.8956 = 6.9556 Calculation of Total Tax: To calculate the total tax on a pack of cigarettes, add the tobacco duty and the VAT amount (which is already included in the 15 price): VAT amount = 15 - 12.50 = 2.50 Total Tax = 6.9556 (Tobacco Duty) + 2.50 (VAT) = 9.4556 Percentage of Total Cost as Tax: To determine the percentage of the total cost attributed to taxes, divide the total tax by the total cost and multiply by 100: Tax Percentage = (9.4556 / 15) x 100 = 63.04% Cost of continued long term smoking Based on the previously calculated total tax of 9.4556 per pack of cigarettes, if a person smokes 2 packs per week, the weekly tax contribution would be: 9.4556/pack * 2 packs/week = 18.9112/week Annually, this equates to: 18.9112/week * 52 weeks/year = 983.3824/year Over 20 years, the total tax contribution *would be: 983.3824/year * 20 years = 19,667.648 [*Assuming price remains the same but it would probably go higher with inflation.] Cost per Year of Lost Life Expectancy : Total money paid to government: 19,667.648 Assumed loss of Life Expectancy: 10 years

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