Public attitude towards tobacco taxation policy in Armenia

Manipulation of the price of tobacco products has proven to be one of the most effective tools in tobacco control. However, a strategy relying predominantly on tampering with free-market conditions by raising prices independently of the quantity available is unlikely to be successful over the long term, unless balanced by equal efforts to reduce demand. Canada has a number of unique factors which combined to create a contraband market that eventually led to political pressure for action at a national level. Although presented with a number of policy alternatives, the federal government based its strategy on reducing tobacco taxes to compete with the contraband product. Provision of an effective comprehensive national strategy to combat tobacco has yet to be realized. Econometric models predict significant changes in consumption from drastic tax reductions that effectively halved the retail price in a large part of Canada. The medical profession and public health authorities will need to combat these effects, not only by working for restoration of fiscal pressures but also for sweeping measures to restrict overall demand if increases in long term morbidity and mortality are to be prevented.

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Illicit/cheap cigarettes in South Africa

Trends in Organized Crime ◽

10.1007/s12117-019-09372-9 ◽

2019 ◽

Vol 23 (3) ◽

pp. 242-262 ◽

Cited By ~ 2

Author(s):

Kirsten van der Zee ◽

Corné van Walbeek ◽

Sibahle Magadla

Keyword(s):

South Africa ◽

South African ◽

National Income ◽

Production Costs ◽

Income Dynamics ◽

African Government ◽

Excise Tax ◽

Illicit Trade ◽

Taxation Policy ◽

Tobacco Taxation

AbstractUsing wave 5 of the National Income Dynamics Study (conducted in 2017), this paper investigates the market for very low-priced cigarettes in South Africa, which, in all probability, are illicit. Since the sum of the excise tax and VAT in 2017 amounted to R16.30 (1.22 USD) per pack, any cigarettes selling for R20 (1.50 USD) per pack or less are likely to be illicit, assuming reasonable production costs. By this definition, approximately 30% of cigarettes consumed in South Africa in 2017 were illicit. Illicit cigarettes are found across all nine provinces. At the margin, the purchase of illicit cigarettes is associated with lower socio-economic characteristics, such as having lower levels of income and education. As illicit cigarettes undermine both the fiscal and health agendas of tobacco taxation policy, these results highlight the need for the South African government to implement urgently effective measures in order to curb illicit trade.

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