2018
DOI: 10.1136/tobaccocontrol-2017-054160
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Association between tax structure and cigarette consumption: findings from the International Tobacco Control Policy Evaluation (ITC) Project

Abstract: Our study provides important empirical evidence of a relationship between tax structure and cigarette consumption. We find that a change from a specific to an ad valorem structure is associated with a 6%-11% higher cigarette consumption. In addition, a change from uniform to tiered structure is associated with a 34%-65% higher cigarette consumption. The results are consistent with existing evidence and suggest that a uniform and specific tax structure is the most effective tax structure for reducing tobacco co… Show more

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Cited by 27 publications
(19 citation statements)
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“…If traced back, the amount of cigarette consumption certainly has a positive correlation with the development of the cigarette industry in the country. The development of the cigarette industry would be good news for workers in the tobacco industry and for tobacco farmers as the main cigarette providers (Shang, et al, 2019). Nevertheless, cigarette consumption has a consequence that is not light to health problems.…”
Section: Resultsmentioning
confidence: 99%
See 1 more Smart Citation
“…If traced back, the amount of cigarette consumption certainly has a positive correlation with the development of the cigarette industry in the country. The development of the cigarette industry would be good news for workers in the tobacco industry and for tobacco farmers as the main cigarette providers (Shang, et al, 2019). Nevertheless, cigarette consumption has a consequence that is not light to health problems.…”
Section: Resultsmentioning
confidence: 99%
“…Externality in the form of health implications for passive and fetal smokers is debated because the type of externality should be considered in individual decisions in smoking. In other words, the implications of externality that appear may not be as large as expected (Shang, et al, 2019).…”
Section: Introductionmentioning
confidence: 84%
“…We also assumed an average weight of 0.75 g for RYO cigarettes, although variation has been documented in reported weights between EU countries 28. Finally, we could not assess changes in market share or shifts in individual choice of brands, nor could we take account of illicit tobacco products, although these comprise a small share of the EU market, contrary to what might be assumed given the strenuous efforts by the TI to exaggerate it as part of their argument against tax rises 8 16 55. Similarly, we could not assess affordability, so price increases might not reduce affordability 38.…”
Section: Discussionmentioning
confidence: 98%
“…A recent analysis of survey data from the International Tobacco Control (ITC) Policy Evaluation Project confirms the benefit of uniform and specific (eg excise) over tiered and ad valorem (based on tobacco value taxation). 5…”
Section: News From the Iaslc Tobacco Control Committeementioning
confidence: 99%