Philip Morris Czech Report

The Philip Morris Czech Report was a study commissioned by Philip Morris and revealed in June 2007 that examined the economics associated with excise taxes in the Czech Republic. It was prepared by Arthur D. Little International and concluded that cigarettes were not a drain on Czechoslovakia's budget partly because the government saves money on health care, pensions and housing when smokers die prematurely.

The report drew outrage in the United States and prompted the American Legacy Foundation to run a newspaper ad that depicted the foot of a cadaver with a toe tag that read: "$1,227 -- That's how much a study sponsored by Philip Morris said the Czech Republic saves on health care, pensions and housing every time a smoker dies." The ad ran in newspapers throughout the U.S.

Philip Morris apologized for the report and said that it sincerely regretted the report, and that the financing and release of the study "exhibited terrible judgment as well as a complete and unacceptable disregard of basic human values."