International Tobacco Industry Document on Taxation (fwd)

[Robert Weissman <rob@essential.org>]

>From Heather Gould in the Minnesota Attorney General's office:


Here is one hot document on taxation  that you can find in the now open 
Minnesota Document Depository.  You can also find it on the internet under 
www.tobaccoresolution.com.

>From "Smoking and Health Initiatives - P.M. International"  1985 - this 
document doesn't say who the writer is, and text is hard to read, but worth 
it - it sounds like the author has a big job in P.M. over seas.  Bates 
numbers 2023268329 - 49.

"With regard to taxation, it is clear that in the U.S., and in most 
countries in which we operate, tax is becoming a major threat to our 
existence."

"Of all the concerns, there is one- taxation- that alarms us the most. 
 While marketing restrictions and public and passive smoking [restrictions] 
do depress volume, in our experience taxation depresses it much more 
severely.  Our concern for taxation is, therefore, central to our 
thinking..."

The author asserts that to achieve industry objectives like fighting off tax 
increases, "it is crucial that we change the public's point of view toward 
our products."

S/He suggests several strategies, including:

1.   Mobilizing smokers themselves.  But  that there are probably only 5% 
that could be mobilized, because:

     "I realize that research tells us that the majority of smokers wished 
they did not smoke and are, therefore, unlikely to be of much help to the 
industry.  ...

(Looking on the bright side of that fact,   the author says that)"My guess 
is that a large number of our smokers must take the view that, though they 
may try to quit, they will probably not be successful.   Having faced up to 
the fact that they will probably continue to smoke, I cannot believe that 
they will willingly accept higher taxes on cigarettes."   Writer goes on to 
suggest mobilizing  smokers , starting in West Germany where "a large tax 
increase is expected in 1987."


2.  Writer also suggests

     "We must attack the anti-smoking groups and zealots more confidently 
than we have in the past.  If we can cool their zeal just a bit, not only 
might smoking as a subject become less of an issue, but also smokers might 
 begin to feel less embattled.

     "Here perhaps we could commission a book on the 'anti-industry 
industry" and show that our attackers actually make money out of their 
activities, a situation quite at variance with their image today.  Possibly, 
too, we can discredit out critics..... If we dig around, we will certainly 
find anomalies which we can exploit.   Internationally, we will start 
looking in countries where we are under severe pressure."

3.  Writer also suggests "using our considerable clout with the media."

     "A number of media proprietors that I have spoken to are sympathetic to 
our position - Rupert Murdoch and Malcolm Forbes are two good examples.  The 
media like the money they make from our advertisements and they are an ally 
that  we can and should exploit."