Resources: Taxation and Price

Fact Sheets

Taxation and Price: Essential Facts
Taxation and Price: Countering Industry Claims
Taxation and Price: Types of Taxes
Tobacco Tax Success Story: Mexico
Tobacco Tax Success Story: South Africa
Tobacco Tax Success Story: Turkey
Tobacco Tax Success Story: United Kingdom
Tobacco Tax Success Story: Ukraine
Tobacco Tax Success Story: United States of America
Cigarette Affordability

Key facts about the importance of tobacco taxation for tobacco control from “An Analysis of Cigarette Affordability” by Evan Bletcher and Corne van Walbeek.

Tobacco Taxes in Poland

Based on The Economics of Tobacco and Tobacco Taxation in Poland by Christina Czart Ciecierski, Rajeev Cherukupalli and Marzenna A Weresa. 2011.

Tobacco Taxes in the Philippines

Based on The Economics of Tobacco and Tobacco Taxation in the Philippines by Stella Luz A. Quimbo, Adele A. Casorla, Marina Miguel-Baquilod, Felipe M. Medalla, Xin Xu and Frank J. Chaloupka. 2012.

Tobacco Taxes in Ukraine

Based on Economics of Tobacco Taxation in Ukraine. Hana Zarubova Ross, Samina Shariff, Anna Gilmore. 2008.

Annex to The Economics of Tobacco and Tobacco Taxation in Turkey

Charts and graphs prepared by Yürekli A, Önder Z, Elibol M, Erk N, Cabuk A, Fisunoglu M, Erk SF, Chaloupka FJ.

Tobacco Taxes in Turkey

Based on The Economics of Tobacco and Tobacco Taxation in Turkey. Ayda Yürekli, Zeynep Önder, Murat Elibol, Nejat Erk, Altan Cabuk, Mahir Fisunoglu, Sinan Fikret Erk, Frank J. Chaloupka. 2010. Annex to The Economics of Tobacco and Tobacco Taxation in Turkey.

Tobacco Taxes in Russia

Based on Economics of Tobacco Taxation in Russia by Hana Zarubova Ross, Samina Shariff, and Anna Gilmore.

Tobacco Taxes in Mexico

Based on The Economics of Tobacco and Tobacco Taxation in Mexico by Hugh Waters, Belén Sáenz de Miera, Hana Ross, and Luz Myriam Reynales Shigematsu.

Tobacco Taxes in India

Based on The Economics of Tobacco and Tobacco Taxation in India by Rijo M John, R. Kavita Rao, M. Govinda Rao, James Moore, R. S. Deshpande, Jhumur Sengupta, Sakthivel Selvaraj, Frank J. Chaloupka, and Prabhat Jha.

Tobacco Taxes in Indonesia

Based on Tobacco Economics in Indonesia. Sarah Barber, Sri Moertiningsih Adioetomo, Abdillah Ahsan, Diahhadi Setyonaluri. 2008.

Tobacco Taxes in Egypt

Based on The Economics of Tobacco and Tobacco Taxation in Egypt. Khaled Hanafy, Ashraf Salah Eldin Saleh, Mariam Ezzat Badr Eldin Elmallah, Haidy Mohamed Amer Omar, Dina Bakr, Frank J. Chaloupka. 2010.

Tobacco Taxes in China

Based on Tobacco Taxation and Its Potential Impact in China by Teh-wei Hu, Zhengzhong Mao, Jian Shi, and Wendong Chen.

Tobacco Taxes in Vietnam

Based on Tobacco Taxation in Vietnam by G Emmanuel Guindon, Hien Nguyen-Thi-Thu, Kinh Hoang-Van, Emily McGirr, Trung Dang-Vu, Lam Nguyen-Tuan. 2010

Tobacco Taxes In Bangladesh

Based on: The Economics of Tobacco and Tobacco Taxation in Bangladesh by Abul Barkat, Ashraf Uddin Chowdhury, Nigar Nargis, Mashfiqur Rahman, Md. Shahnewaz Khan, Ananda Kumar Pk., Sharmina Bashir, and Frank J. Chaloupka. 2012. Annex to The Economics of Tobacco and Tobacco Taxation in Bangladesh

Reports & Studies

The Economics of Tobacco and Tobacco Taxation in the Philippines

The International Union Against Tuberculosis and Lung Disease illustrates how raising tobacco excise taxes and prices is an effective tool to reduce tobacco use and prevalence and should be an important component of the overall tobacco control environment to reduce the smoking rate in the Philippines, one of the largest consumers of tobacco in the Western Pacific Region.

The Economics of Tobacco and Tobacco Taxation in Bangladesh

The International Union Against Tuberculosis and Lung Disease describes the tobacco situation in Bangladesh and makes recommendations for future tobacco tax policy in one of the largest tobacco consuming countries in the world.

Tobacco Taxation and Its Potential Impact in China

The International Union Against Tuberculosis and Lung Disease provides evidence-based policy analysis on the use of taxation as a key tobacco control instrument in China, which has the world’s highest number of smoking-attributable deaths.

The Economics of Tobacco and Tobacco Taxation in Poland

The International Union Against Tuberculosis and Lung Disease illustrates how raising tobacco excise taxes and prices is an effective tool to reduce tobacco use and prevalence and should be an important component of the overall tobacco control environment to reduce Poland’s high adult and youth tobacco use prevalence.

The Economics of Tobacco and Tobacco Taxation in Mexico

International Union Against Tuberculosis and Lung Disease provides a comprehensive analysis of the tobacco market in Mexico and the viability of using taxation as a strategy to limit smoking, save lives, and raise tax revenues. (2010)

Economics of Tobacco Taxation in Russia

Tobacco-related diseases are responsible for between 330,000 and 400,000 premature deaths in Russia each year and contribute substantially to the country’s declining life expectancy and population decrease.The International Union Against Tuberculosis and Lung Disease examines the potential of using cigarette taxation as an effective tobacco control measure to reverse these unfavorable trends, taking into account Russian historical and socioeconomic perspectives.

The Economics of Tobacco and Tobacco Taxation in India

The International Union Against Tuberculosis and Lung Disease examines the economic and policy dimensions of tobacco taxation as a mechanism for tobacco control in India, the country with the second largest population of tobacco users in the world.

The Economics of Tobacco and Tobacco Taxation in Egypt

This report by the International Union Against Tuberculosis and Lung Disease describes the tobacco environment and current tobacco control policies in Egypt and presents evidence on the effects of prices on cigarette demand. Estimates based on cigarette demand in the 1990s and 2000s are used to project the impact of the recent cigarette tax increases on cigarette consumption, cigarette excise tax revenues, smoking prevalence and future deaths from smoking.

Taxation of Cigarettes in the Bloomberg Initiative Countries: Overview of Policy Issues and Proposal

In addition to increasing the excise rate(s) on cigarettes, reforming the excise regime itself may be an important tobacco control measure. Emil M. Sunley outlines specific considerations in designing a cigarette excise regime and reviews and make recommendations for excise regimes in the Bloomberg Initiative countries.

An Analysis of Cigarette Affordability

Tobacco control economists have consistently promoted excise tax increases as an appropriate and effective tobacco control strategy.The International Union Against Tuberculosis and Lung Disease presents the latest affordability statistics and trends in cigarette affordability and addresses certain methodological issues, especially regarding the measurement of income, when calculating affordability measures.

A Modern Economic View of Tobacco Taxation

International Union Against Tuberculosis and Lung Disease presents a clear and strong case for using tobacco taxation as both a means of revenue raising and a tool of public health.

Taxation of Cigarettes in the Bloomberg Initiative Countries

This paper outlines specific considerations in designing a cigarette excise regime. It reviews the excise regimes in the Bloomberg Initiative countries and makes recommendations of how these regimes could be reformed taking into account international best practices and the starting point for the reform.

India: The Tax Treatment of Bidis

Bidis are under-taxed compared to cigarettes. Taking into account the health risks of each, and therefore, on health grounds, a strong case can be made for increasing the excise burden on bidis. Emil Sunley, one of the world’s leading experts on tobacco taxation, shows that taxes on bidis should increase, and he lays out a rational, detailed plan for how to do so

The Establishment and Use of Dedicated Taxes for Health

The WHO report outlines the use of taxes for initiatives.

Taxation (including smuggling control)

The World Health Organization presents evidence from low-, middle- and high-income countries that shows how the increase in the price of tobacco products is an effective strategy to reduce demand. Higher prices induce tobacco users to quit and prevent other individuals from starting.

Curbing the epidemic: Governments and the economics of tobacco control

By 2030, tobacco is expected to be the single biggest cause of death worldwide, accounting for about 10 million deaths per year. The report presented by the WHO and the World Bank covers key issues that most societies and policymakers face when they think about tobacco or its control and assesses the expected consequences of tobacco control for health, for economies, and for individuals. It demonstrates that the economic fears that have deterred policymakers from taking action are largely unfounded.

Economic policies for tobacco control in developing countries

Since lower socioeconomic groups usually smoke more, they also contribute more to total cigarette tax collection. Thus, those who can afford it least contribute the most in terms of tobacco taxes. This means that tobacco taxes are regressive. However, tobacco tax increases are likely to be progressive, decreasing the relative tax incidence on the poor, vis-à-vis the rich.

Price and tax policies (in relation to Article 6 of the Convention)

This technical report by the WHO Tobacco Free Initiative provides evidence that proves the effectiveness of tobacco tax and price increases in reducing tobacco use. an overview of existing tobacco-product taxes and tax structures around the world, as well as a description of the revenue potential of higher tobacco-product taxes and how this revenue may be used to support other tobacco-control interventions and health-promotion activities.

Tobacco Taxation in Vietnam

This report describes the tobacco taxation in Vietnam, evaluates its potential impact on reducing tobacco use and generating revenue.

Economics of Tobacco Taxation in Ukraine

This report describes the tobacco taxation in Ukraine, evaluates its potential impact on reducing tobacco use and generating revenue.

The Economics of Tobacco and Tobacco Taxation in Turkey

This report describes the tobacco taxation in Turkey, evaluates its potential impact on reducing tobacco use and generating revenue.

Key Websites

International Union Against Tuberculosis and Lung Disease: Tobacco Taxation
European Commission: Taxation of Tobacco Products
World Health Organization: Tobacco Taxes