The long-term "boost" for the cancer industry will also be great.
So who said that economists are only thinking in the short term?


http://www.telegraph.co.uk/news/newstopics/howaboutthat/5271376/Chinese-orde
red-to-smoke-more-to-boost-economy.html


Chinese ordered to smoke more to boost economy

Local government officials in China have been ordered to smoke nearly a
quarter of a million packs of cigarettes in a move to boost the local
economy during the global financial crisis.

   By Peter Foster in Beijing
   Last Updated: 7:45AM BST 04 May 2009

The edict, issued by officials in Hubei province in central China,
threatens to fine officials who "fail to meet their targets" or are caught
smoking rival brands manufactured in neighbouring provinces.

Even local schools have been issued with a smoking quota for teachers,
while one village was ordered to purchase 400 cartons of cigarettes a year
for its officials, according to the local government's website.

The move, which flies in the face of national anti-smoking policies set in
Beijing, is aimed at boosting tax revenues and protecting local
manufacturers from outside competition from China's 100 cigarette makers.

In total, officials have been ordered to puff their way through 230,000
packs of Hubei-branded cigarettes worth £400,000.

China's government has ordered massive government spending at both national
and provincial levels to prop up the economy following plummeting demand
for Chinese exports abroad, however imposing a cigarette quota is unusual.

"The regulation will boost the local economy via the cigarette tax," said
Chen Nianzu, a member of the Gong'an cigarette market supervision team.

China has 350 million smokers, about a million of whom die each year from
smoking-related illnesses. Despite anti-smoking campaigns, cigarette taxes
form a major component of China's annual tax-take at local level.

Local authorities in Gong'an county are taking the cigarette quota
seriously and have established a "special taskforce" to enforce it.

According to a local newspaper account, a teacher from a village middle
school said officials burst unannounced into the school at around 3pm one
afternoon and started sifting through the ashtray and bins in the
staff-room.

Three "non-compliant" cigarette butts were discovered by the "cigarette
marketing consolidate team" which informed the teacher he had violated the
related civil servants "cigarette usage rule" After some negotiation the
school was spared a fine, but subjected to "public criticism" for
"undisciplined practices".



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