Key Issues

Tax increases on tobacco products that result in price increases are widely considered the single most effective intervention to reduce tobacco use. Although tobacco is addictive, users nonetheless respond to price increases by reducing the amount they consume or by quitting altogether. Because youth are particularly price-sensitive, tobacco tax increases are also effective in preventing youth from starting to smoke. Research shows that a 10% increase in price results in a 4% drop in total consumption in higher income countries and a 6-8% decline in lower income countries.