Key Issues

in Tobacco Taxation

A Comprehensive Pricing Strategy for Tobacco Products

A significant body of research evidence from around the world shows that the most effective intervention to reduce tobacco use is to increase tobacco prices through tobacco tax increases. On average, a 10% increase in price leads to a 4% drop in total consumption, with half the decrease due to continuing smokers smoking fewer cigarettes and half due to smokers quitting and youth not starting. Moreover, various studies also show that smokers who seek out ways to minimize the price they pay for cigarettes make fewer cessation attempts and are less likely to reduce their tobacco consumption.

A Comprehensive Pricing Strategy for Tobacco Products

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