Exploiting a low tax system: non-tax-induced cigarette price increases in Taiwan 2011–2016

IntroductionThis study aims to analyse the non-tax-induced price increasing strategies adopted by tobacco industry in Taiwan, a high-income country with comprehensive tobacco control policies but low tobacco taxes and a declining cigarette market.MethodsUsing governmental tax, price and inflation data, we analysed cigarette sales volume, affordability, affordability elasticity of demand, market share, pricing and net revenue of the top five tobacco companies in Taiwan from 2011 to 2016 when no tax increases occurred.ResultsTotal revenue after tax grew significantly for all the major transnational tobacco companies between 2011 and 2016 at the expense of the state-owned Taiwan Tobacco and Liquor Corporation. In terms of market share, Japan Tobacco (JT) was the leading company, despite experiencing a small decline, while British American Tobacco and Imperial Brands remained stable, and Philip Morris International increased from 4.7% to 7.0%. JT adopted the most effective pricing strategy by increasing the real price of its two most popular brands (Mevius and Mi-Ne) and, at the same time, doubling the sales of its cheaper and less popular brand Winston by leaving its nominal retail price unaltered.ConclusionsLow and unchanged tobacco taxes enable tobacco companies to use aggressive pricing and segmentation strategies to increase the real price of cigarettes without making them less affordable while simultaneously maintaining customers’ loyalty. It is crucial to continue monitoring the industry’s pricing strategies and to regularly increase taxes to promote public health and to prevent tobacco industry from profiting at the expense of government revenues.

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Tobacco control and Healthy China 2030

Tobacco Control ◽

10.1136/tobaccocontrol-2018-054372 ◽

2018 ◽

Vol 28 (4) ◽

pp. 409-413 ◽

Cited By ~ 13

Author(s):

Mark Goodchild ◽

Rong Zheng

Keyword(s):

Tobacco Control ◽

Control Measures ◽

Smoking Rate ◽

Policy Makers ◽

The Real ◽

The Third ◽

Full Implementation ◽

Tobacco Taxes ◽

Real Price ◽

Business As Usual

BackgroundThe Healthy China 2030 strategy sets ambitious targets for China’s policy-makers, including a decrease in the smoking rate from 27.7% in 2015 to 20% by 2030. China has made progress on tobacco control in recent years, but many key measures remain underused. This study explores the potential for full implementation of these measures to achieve the targeted reduction in smoking by 2030.MethodsFirst, a ‘business as usual’ scenario for China’s cigarette market was developed based only on underlying economic parameters. Second, non-price tobacco control measures were then added assuming they are fully implemented by 2030. Third, excise per pack was raised to a level that would increase the real price of cigarettes by 50% in 2030.FindingsUnder the business as usual scenario, the rate of smoking falls to around 26.6% in 2030. When non-price measures are included, the rate of smoking falls to 22.0% (20.9%~23.1%). Thus, non-price measures alone are unlikely to achieve the Healthy China target. Under the third scenario, excise per pack was roughly doubled in 2030 in order to increase real cigarette prices by 50%. The rate of smoking then falls to 19.7% (18.2%~21.3%), reflecting 78 million (59~97 million) fewer smokers compared with 2016. In addition, real excise revenue from cigarettes increases by 21% (−3%~47%) compared with 2016.ConclusionSignificantly higher tobacco taxes will be needed to achieve Healthy China 2030 target for reduced smoking even after the implementation of other tobacco control measures.

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Claims of reduced odor on tobacco packs in low- and middle-income countries

Nicotine & Tobacco Research ◽

10.1093/ntr/ntab177 ◽

2021 ◽

Author(s):

Olufemi Erinoso ◽

Kevin Welding ◽

Katherine Clegg Smith ◽

Joanna E Cohen

Keyword(s):

Surveillance System ◽

Tobacco Industry ◽

Cigarette Use ◽

Middle Income ◽

Design Elements ◽

Middle Income Countries ◽

Philip Morris ◽

Japan Tobacco ◽

Cigarette Packs ◽

Low And Middle Income

Abstract Introduction Cigarettes designed to have less smoke smell were developed by the tobacco industry to supposedly reduce negative qualities. Cigarettes with marketing claims communicating these designs have been sold in high-income countries and marketing of “less smoke smell” terms on cigarette packaging can promote cigarette use. It is unclear to what extent they have been marketed in low- and middle-income countries (LMICs). Methods The Tobacco Pack Surveillance System (TPackSS) systemically collected tobacco packs available in 14 LMICs with high tobacco use between 2013-2017. We coded 4,354 packs for marketing appeals, including claims related to smoke smell. We describe “less smoke smell” and similar claims found on these packs and compare across country and tobacco manufacturers. Results Phrases communicating less smoke smell were present on packs purchased in nine of 14 LMICs, including Bangladesh, Brazil, China, India, Mexico, Philippines, Russia, Ukraine, and Vietnam. The most commonly (74.1%) used terminology was “less smoke smell”, "LSS" or a combination of the two. Packs from Russia had the most prevalent use (11.8%) of such claims. Companies using these terms across 21 brands included Japan Tobacco International (JTI), British American Tobacco (BAT), Philip Morris International (PMI) and other smaller companies. JTI accounted for 70.9% of packs with such terms. Conclusion Some of the world’s largest tobacco companies are communicating less smoke smell on packs in LMICs. Less smoke smell and similar phrases on packaging should be prohibited because they can enhance the appeal of cigarettes. Implications Tobacco companies are using “less smoke smell” and similar phrases on cigarette packs in LMICs. These claims have the potential to increase the appeal of smoking and promote cigarette use. Countries should consider policies to restrict attractive labeling claims, in accordance with the WHO Framework Convention on Tobacco Control (FCTC) Article 13 guidelines, which recommends restrictions on attractive design elements on tobacco packaging.

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‘Being politically active does not have to be difficult.’ A content analysis of tobacco industry-sponsored advocacy websites

Tobacco Control ◽

10.1136/tobaccocontrol-2019-055413 ◽

2020 ◽

pp. tobaccocontrol-2019-055413

Author(s):

M Jane Lewis ◽

Christopher Ackerman ◽

Pamela Ling

Keyword(s):

Tobacco Industry ◽

Tobacco Policy ◽

Building Relationships ◽

Policy Issues ◽

Tobacco Taxes ◽

Tobacco Control Policies ◽

The Usa ◽

Marketing Activities ◽

Policy Objectives ◽

Politically Active

ObjectiveTo characterise the thematic content of tobacco industry-sponsored advocacy websites in the USA and to compare these sites to identify differences in products, target audience, policies or themes.MethodsIn 2017, US-based Google and purposive searches identified six US tobacco industry-sponsored advocacy websites. A coding guide based on existing literature, tobacco policy issues and iterative review of the websites was developed and, descriptive analyses of themes on individual websites and overall were conducted.ResultsWe identified 18 themes; the most common of these were: tobacco taxes (13.9%), providing advocacy resources (10.6%) and pleas for action (10.3%). Related themes were aggregated into four broad categories: advocacy (36.7%), taxes (31.4%), legislation is excessive or unnecessary (21%), and support for weaker tobacco control policies (10.9%). Websites targeting consumers provided more resources to facilitate advocacy than websites targeting retailers.ConclusionsWebsites promoting protobacco advocacy are an important and evolving strategy for the tobacco industry. Websites are particularly well suited to leverage marketing activities (eg, building relationships with retailers and consumers) to achieve policy objectives. Monitoring these tactics may allow advocates to counter and anticipate industry opposition to tobacco policy.

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Memoranda of understanding: a tobacco industry strategy to undermine illicit tobacco trade policies

Tobacco Control ◽

10.1136/tobaccocontrol-2018-054668 ◽

2019 ◽

Vol 28 (e2) ◽

pp. e110-e118 ◽

Cited By ~ 2

Author(s):

Eric Crosbie ◽

Stella Bialous ◽

Stanton A Glantz

Keyword(s):

Tobacco Industry ◽

Tobacco Products ◽

Illicit Trade ◽

Accountability System ◽

Philip Morris ◽

The Media ◽

Illicit Tobacco Trade ◽

Transnational Tobacco Companies ◽

Corporate Social ◽

Corporate Social Responsibility Reports

ObjectiveAnalyse the transnational tobacco companies’ (TTCs) memoranda of understanding (MoUs) on illicit trade and how they could undermine the WHO Framework Convention on Tobacco Control (FCTC) and the Protocol to Eliminate Illicit Trade in Tobacco Products (Protocol).MethodsReview of tobacco industry documents and websites, reports, news and media items using standard snowball search methods.ResultsFacing increasing pressure from governments and the FCTC to address illicit tobacco trade during the late 1990s, TTCs entered into voluntary partnerships embodied in MoUs with governments’ law enforcement and customs agencies. One of the earliest known MoUs was between Philip Morris International and Italy in 1999. TTCs agreed among themselves to establish MoUs individually but use the Italian MoU as a basis to establish similar connections with other governments to pre-empt more stringent regulation of illicit trade. TTCs report to have signed over 100 MoUs since 1999, and promote them on their websites, in Corporate Social Responsibility reports and in the media as important partnerships to combat illicit tobacco trade. There is no evidence to support TTCs’ claims that these MoUs reduce illicit trade. The terms of these MoUs are rarely made public. MoUs are non-transparent partnerships between government agencies and TTCs, violating FCTC Article 5.3 and the Protocol. MoUs are not legally binding so do not create an accountability system or penalties for non-compliance, rendering them ineffective at controlling illicit trade.ConclusionGovernments should reject TTC partnerships through MoUs and instead ratify and implement the FCTC and the Protocol to effectively address illicit trade in tobacco products.

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‘Both Sides of the Argument’? A critical review of existing evidence on the illicit trade in tobacco products in Canada

Tobacco Control ◽

10.1136/tobaccocontrol-2018-054687 ◽

2019 ◽

Vol 28 (e2) ◽

pp. e141-e147

Author(s):

Julia Smith ◽

Sheryl Thompson ◽

Kelley Lee

Keyword(s):

Tobacco Industry ◽

Grey Literature ◽

Evidence Base ◽

Complex Problem ◽

Primary Data ◽

Original Research ◽

Tobacco Products ◽

Illicit Trade ◽

Tobacco Control Policies ◽

Transnational Tobacco Companies

IntroductionThe illicit trade in tobacco products (ITTP) is widely recognised as a substantial and complex problem in Canada. However, the independence of available data and quality of analyses remains unknown. Reliable and accurate data on the scale and causes of the problem are needed to inform effective policy responses.MethodsWe searched the scholarly and grey literature using keywords related to ITTP in Canada. We identified 26 studies published in English since 2008 that present original research drawing on primary data. We analysed these studies for their independence from the tobacco industry, methodology, findings and gaps in knowledge.ResultsThe study finds 42% of the literature reviewed has links to the tobacco industry. These studies provide insufficient methodological detail, present higher estimates of the volume of ITTP and attribute the causes to higher rates of tobacco taxation. The classification of all indigenous tobacco sales as illicit, by both industry linked and independent studies, contributes to overestimates and serves the interests of transnational tobacco companies. There is need for independent and comprehensive data on the ITTP in Canada over time, across population groups and geographies.ConclusionWhile there is evidence that the ITTP in Canada is a major and complex issue that requires effective tobacco control policies, there is a limited evidence base on which to develop such responses. This review finds industry-linked studies lack independence, employ biased methodologies and serve tobacco industry interests. Independent studies present more rigorous approaches, but primarily focus on youth and the province of Ontario.

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How to combat efforts to overturn bans on electronic nicotine delivery systems: lessons from tobacco industry efforts during the 1980s to open closed cigarette markets in Thailand

BMJ Global Health ◽

10.1136/bmjgh-2020-004288 ◽

2021 ◽

Vol 6 (1) ◽

pp. e004288

Author(s):

Roengrudee Patanavanich ◽

Stanton A Glantz

Keyword(s):

Tobacco Industry ◽

Delivery Systems ◽

Electronic Nicotine Delivery Systems ◽

Trade Law ◽

International Trade Law ◽

Nicotine Delivery ◽

Philip Morris ◽

Trade Sanctions ◽

Transnational Tobacco Companies ◽

Foreign Brands

Until 1990, it was illegal for transnational tobacco companies (TTCs) to sell cigarettes in Thailand. We reviewed and analysed internal tobacco industry documents relevant to the Thai market during the 1980s. TTCs’ attempts to access the Thai cigarette market during the 1980s concentrated on political lobbying, advertising and promotion of the foreign brands that were illegal to sell in Thailand at the time. They sought to take advantage of the Thai Tobacco Monopoly’s (TTM) inefficiency to propose licencing agreements and joint ventures with TTM and took advantages of unclear regulations about cigarette marketing to promote their products through advertising and sponsorship activities. After their initial efforts failed, they successfully lobbied the US to impose trade sanctions to liberalise Thailand’s market. Similar to the situation for cigarettes in the 1980s, since 2017, Philip Morris International has worked in parallel with a pro-e-cigarette group to pressure Thailand’s government to allow sales of electronic nicotine delivery systems (ENDS; including e-cigarettes and heated tobacco products), knowing the products were illegal under Thai law. Health advocates and government authorities should be aware of past TTCs’ tactics for cigarettes and anticipate that TTCs will attempt to use international trade law to force markets open for ENDS if their domestic efforts fail.

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Tracking and tracing the tobacco industry: potential tobacco industry influence over the EU’s system for tobacco traceability and security features

Tobacco Control ◽

10.1136/tobaccocontrol-2019-055094 ◽

2019 ◽

pp. tobaccocontrol-2019-055094 ◽

Cited By ~ 2

Author(s):

Allen William Andrew Gallagher ◽

Anna B Gilmore ◽

Michael Eads

Keyword(s):

Tobacco Industry ◽

Data Repository ◽

The European Union ◽

Technical Standards ◽

Illicit Trade ◽

Eu Member States ◽

Philip Morris ◽

History Of ◽

Transnational Tobacco Companies ◽

T System

BackgroundSubsequent to the transnational tobacco companies’ (TTC) history of involvement in tobacco smuggling, the Illicit Trade Protocol (ITP) requires that tobacco tracking and tracing (T&T) systems be established independent of the industry. In response, TTCs developed a T&T system, originally called Codentify, promoting it via an elaborate set of front groups to create a false impression of independence. The European Union (EU) is one of the first and largest jurisdictions to operationalise T&T. We explore how industry efforts to influence T&T have evolved.MethodsAnalysis of tobacco industry documents, policy documents, submissions to a relevant consultation and relationships between the tobacco industry and organisations proposed by it and approved by the European Commission to provide a data repository function within the EU’s T&T system.Findings17 months after TTCs sold Codentify to Inexto and Philip Morris International claimed Inexto was independent, leaked documents suggest TTCs and Inexto continued to have a financial and operational relationship. Inexto’s meetings with TTCs, engagement with EU Member States and promotion of industry-favoured technical standards suggest TTCs influenced Inexto’s activities, using the company to undermine EU T&T. The EU’s T&T system appears to be inconsistent with the ITP due to its ‘mixed’ governance and seven of eight organisations approved as data repository providers having pre-existing industry business links.ConclusionsTTC’s efforts to maximise their control and minimise external scrutiny of T&T systems seriously limit attempts to address tobacco smuggling. Countries implementing T&T should be alert to such efforts and should not replicate the EU system.

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‘We have a rich heritage and, we believe, a bright future’: how transnational tobacco companies are using Twitter to oppose policy and shape their public identity

Tobacco Control ◽

10.1136/tobaccocontrol-2017-054188 ◽

2018 ◽

Vol 28 (2) ◽

pp. 227-232 ◽

Cited By ~ 8

Author(s):

Christina Watts ◽

Marita Hefler ◽

Becky Freeman

Keyword(s):

Tobacco Control ◽

Tobacco Industry ◽

Control Policy ◽

Tobacco Control Policy ◽

Business Practices ◽

Public Identity ◽

Social Media Platforms ◽

Japan Tobacco ◽

Responsible Business Practices ◽

Transnational Tobacco Companies

BackgroundThe tobacco industry has a long history of opposing tobacco control policy and promoting socially responsible business practices. With the rise of social media platforms, like Twitter, the tobacco industry is enabled to readily and easily communicate these messages.MethodsAll tweets published by the primary corporate Twitter accounts of British American Tobacco (BAT), Imperial Brands PLC (Imperial), Philip Morris International (PMI) and Japan Tobacco International (JTI) were downloaded in May 2017 and manually coded under 30 topic categories.ResultsA total of 3301 tweets across the four accounts were analysed. Overall, the most prominent categories of tweets were topics that opposed or critiqued tobacco control policies (36.3% of BAT’s tweets, 35.1% of Imperial’s tweets, 34.0% of JTI’s tweets and 9.6% of PMI’s tweets). All companies consistently tweeted to promote an image of being socially and environmentally responsible. Tweets of this nature comprised 29.1% of PMI’s tweets, 20.9% of JTI’s tweets, 18.4% of Imperial’s tweets and 18.4% of BAT’s tweets. BAT, Imperial, JTI and PMI also frequently used Twitter to advertise career opportunities, highlight employee benefits, promote positive working environments and bring attention to awards and certifications that the company had received (11.6%, 11.1%, 19.3% and 45.7% of the total tweets published by each account, respectively).ConclusionsTransnational tobacco companies are using Twitter to oppose tobacco control policy and shape their public identity by promoting corporate social responsibility initiatives in violation of WHO Framework Convention on Tobacco Control. Regulation of the tobacco industry’s global online activities is required.

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Tobacco industry data on illicit tobacco trade: a systematic review of existing assessments

European Journal of Public Health ◽

10.1093/eurpub/ckaa166.1225 ◽

2020 ◽

Vol 30 (Supplement_5) ◽

Author(s):

A Gallagher ◽

K A Evans-Reeves ◽

J L Hatchard ◽

A B Gilmore

Keyword(s):

Data Collection ◽

Tobacco Control ◽

Tobacco Industry ◽

Grey Literature ◽

Tax Avoidance ◽

Control Policy ◽

Tobacco Control Policies ◽

Tobacco Tax ◽

Illicit Tobacco Trade ◽

Transnational Tobacco Companies

Abstract Background The tobacco industry portrays itself as key to solving Illicit Tobacco Trade (ITT) and presents its funding of research on ITT as its attempt to address the problem. In recent years, transnational tobacco companies (TTCs) have been a major funding source of data on ITT which is heavily publicised, especially when a tobacco control policy is being debated. Methods Papers and reports assessing tobacco industry-funded data on ITT were obtained via systematic searching of academic and grey literature through databases and Google/website searches respectively. Characteristics of assessed industry funded data and criticisms/praise of them as detailed in the assessments were coded using a framework based on existing literature on methods for measuring ITT and for assessing the quality of estimates on tobacco tax avoidance and evasion. Results Of the 35 assessments reviewed, 31 argued that tobacco industry estimates were higher than independent estimates. Criticisms identified problems with data collection (29), analytical methods (22) and presentation of results (21), which resulted in inflated ITT estimates or data on ITT that were presented in a misleading manner. Lack of transparency from data collection right through to presentation of findings was a key issue with insufficient information to allow replication of the findings frequently cited. Conclusions Our findings demonstrate that the contribution of tobacco industry-funded data on ITT thus far in aiding understanding of ITT is extremely limited, if not counterproductive, as tobacco industry funded data on ITT is unreliable and primarily serves as a platform for the industry to lobby against tobacco control policies, including tax increases. Key messages TTC-funded data routinely exaggerate/overestimate levels of illicit when compared with independent sources and fail to meet the standards of peer-reviewed publications. A potential means for providing high-quality and transparent ITT research would be a tax on tobacco companies, with funds going towards independent development of established methodologies.

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South Africa’s Trade Performance under Alternative Exchange Rate Regimes

Journal of Economics and Behavioral Studies ◽

10.22610/jebs.v10i6.2616 ◽

2018 ◽

Vol 10 (6) ◽

pp. 261

Author(s):

Romaine Patrick ◽

Phocenah Nyatanga

Keyword(s):

South Africa ◽

Exchange Rate ◽

Exchange Rates ◽

Exchange Rate Regime ◽

Real Exchange Rates ◽

Series Data ◽

Growth Strategies ◽

The Real ◽

Real Price ◽

Floating Exchange Rate

This study examined the effect exchange rates have on import and export volumes under alternative exchange rate policies adopted in South Africa over the period 1960 to 2017. Using quarterly time series data for the stated period, a log-linear error correction model is employed to estimate the country’s export and import elasticities, taking into account Gross Domestic Product (GDP), the real price of exports, the real price of imports and real exchange rates. Using the freely floating exchange rate regime as the base period, the study concluded that both export and import volumes are lower under a system of fixed exchange rates. Export and import volumes were also found to be lower under the dual exchange rate regime, relative to the freely floating exchange rate regime. In accordance with export-led growth strategies, exports were found to be higher and imports lower under a managed floating exchange rate regime. It is therefore recommended that South Africa revert to a more managed exchange rate regime, until the South African economy is developed to accommodate a freely floating exchange rate regime.

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