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State spending on tobacco prevention and control does not meet CDC-recommended levels, with zero states funding programs at recommended levels and only three states funding 70% of the recommended amount

In such a scenario the government would lose any tax they gain from the sales of tobacco (around 12.1 billion in 2011/2012), while still footing the bill for subsequent healthcare (estimated to be around 5 billion in 2005/2006)

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It steps in as the GST compensation cess ends soon, keeping high taxes on these harmful products to protect government money and public health