Better cigarette tax policies and higher tobacco excise tax revenues

Abstract

BackgroundIn November 2021, the Tobacconomics team published the second edition of theCigarette Tax Scorecardwhich evaluates cigarette taxation in each country based on four components—cigarette price, affordability change, tax share and tax structure. This study examines the relationship between the overall cigarette tax score and tobacco excise tax revenue between 2014 and 2018.MethodsUsing cigarette tax scores from theTobacconomics Cigarette Tax Scorecardand tobacco excise tax revenue information from WHO, this analysis is based on ordinary least squares estimations to assess the association between the overall cigarette tax scores and tobacco excise tax revenues per capita controlling for countries’ tobacco control environment, sociodemographic characteristics and country and year fixed effects.ResultsA 1-point higher overall cigarette tax score is associated with higher tobacco excise tax revenue per capita of $11.98 (in constant 2018 purchasing power parity international dollars). For low and middle-income countries and lower performing countries at baseline, a 1-point higher overall cigarette tax score is associated with higher tobacco excise tax revenue per capita of $11.32 and $6.92, respectively. If all countries had increased their scores to ‘5’, the tobacco excise tax revenue per capita would have increased by 22.51%.ConclusionsHigher overall cigarette tax scores are associated with higher tobacco excise tax revenue per capita. Countries aiming to reach higher cigarette tax scores would be able to reduce tobacco use and increase their tobacco tax revenue, which can be allocated to development priorities.

Health Care Policy and Disparities in Health

“…Laws requiring stores to keep tobacco products for sale behind the counter, make purchasing them less convenient, and reduce sales to teenagers 23,24 …”

“…the counter, make purchasing them less convenient, and reduce sales to teenagers. 23,24 Each state is free to implement its own tobacco policies. Kentucky and West Virginia have among the lowest excise taxes on cigarettes and not unrelated the highest proportion of their population using tobacco of any state.…”