In the 512-page document, entitled `Tobacco Control in Developing Countries' it is stated that it is wrong to conceive that tobacco product smuggling will negate the benefits of imposition of higher taxes and that a slump in tobacco sales will lead to millions of permanent job losses worldwide.

The document is the outcome of a three-year research project involving a team of about 40 economists, epidemologists, social scientists and experts in public policy and legal affairs from 13 countries.

According to the study higher taxes leading to a 10 per cent rise in cigarette prices would motivate about 42 million people to quit smoking. Raising cigarette taxes could prevent about 10 million tobacco-related deaths in the world, out of which nine million deaths occur in low and middle income countries. Not only will tobacco consumption and tobacco-related deaths drop, but government revenues will actually rise by seven per cent on a average for a 10 per cent increase in tax on cigarettes.

This research shows that the economic measure of a tax increase is the single most important intervention by the government to curb tobacco consumption and the economic aspects of tobacco control has already started receiving global attention.

The WB has started working with governments in many countries to act on the evidences and recommendations laid out in its earlier report `Curbing the Epidemic'which was made public in 1999.

The recent study by WHO and the WB has cautioned that unless smoking patterns change, one billion people are expected to die from smoking habit in the 21st century, which is 10 times more than those killed by tobacco throughout the 20th century. Even modest reductions in a disease burden of such immensity would bring highly significant health gains.

The report further stated that despite their shorter lifespan, smokers appear to incur higher healthcare costs than non-smokers. In high income countries, the treatment of tobacco-related diseases swallows up an 6 to 15 per cent of annual spending on health. In both high income and low income countries as much as 1 per cent of gross domestic product is spent on healthcare for smokers.

It suggested that a package of tobacco control measures can be delivered at very low cost. In high income countries, comprehensive control programmes can account for 0.1 to one per cent of public spending on health which is an affordable proportion even in low income countries where public spending on health is lower.

The study stated that efforts to reduce the supply of cigarettes have been largely ineffective. Prohibition and trade embargoes are unrealistic while attempts to restrict cigarette sales to teenagers have usually been unsuccessful even in countries with substantial enforcement capacity. Crop substitution scheme have also failed largely because of stronger incentives given to grow tobacco.

The study noted that almost a 30 per cent of cigarette exports amounting to 355 billion cigarettes are smuggled. This is a far higher percentage than smuggled amount of most internationally traded consumer goods. The problem is worst where corruption is rife. The levels of corruption within individual countries are a better indicator of smuggling than price increases.

Attempts to slash taxes on tobacco has resulted in a fall in government's revenue and increase in consumption. Hence, the effective way is to increase taxes and initiate strong crackdown on smuggling.