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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 9 No. 166

Higher tobacco taxes could save 115 Million Lives

By Manjari Peiris

tobacco1_1.jpgA study published in Nature Reviews Cancer of Canada, found that tripling tobacco taxes could deter new smokers, rapidly increase cessation rates, and save at least 115 million lives by 2050.

The study findings also disclose that the other tobacco control measures such as public education campaigns, smoke-free laws, marketing bans and cessation treatments are also effective in reducing tobacco use.

The study findings show that worldwide smoking causes approximately 5-6 million deaths per year, including 31% of all cancer deaths in middle-aged men and 6% of all cancer deaths in middle-aged women.

Countries such as France that have aggressively used higher taxes to curb smoking have reduced consumption much faster than countries that have not aggressively increased tobacco taxes.

In low and middle income countries, a 10% increase in tobacco prices reduces consumption by approximately 8%, which is twice the effect seen in high-income countries.

Tripling world tobacco taxes would increase average tobacco prices by 70% and save at least 115 million lives by 2050.

The key messages that the study conductors wish to pass on are that aggressively increasing the price of tobacco through higher taxes is a highly effective strategy to reduce tobacco use and that higher tobacco taxes must be a part of a comprehensive strategy to reduce tobacco use that includes 100% smoke-free policies, strong warning labels, effective public education campaigns and complete bans on tobacco marketing.

Higher taxation is the single most important intervention to raise smoking cessation globally. Tobacco taxes and consumption are strongly inversely related worldwide. Over 100 studies worldwide show that increases in taxes on cigarettes and other tobacco products lead to significant reductions in tobacco use. Studies from high income countries estimate a 10% increase in cigarette prices will reduce overall smoking by 2.5 to 5% in the medium term.

The fewer studies from low and middle income countries suggest that increasing taxation will have an effect twice as great: a 10% increase in price will reduce smoking by 8% in the medium term. Higher taxes reduce relapse and decrease consumption in individuals who continue to smoke. Half or more of the effect of price on cigarette demand results from reducing the number of current smokers.

Higher taxes increase the number of attempts at stopping smoking and the success of those attempts; a 10% increase in price results in 11% - 13% shorter smoking duration, or a 3% higher probability of cessation. Higher cigarette prices are particularly effective in preventing young smokers from moving beyond experimentation into regular, addicted smoking and are also effective in less educated or lower income individuals.

An increase in cigarette taxes of 10% globally would raise cigarette tax revenues by nearly 7%, as the fall in demand is less than proportional to the price increase in most countries. However, taxes are underused in most developing countries. Taxes tend to be higher and account for a greater share of the retail price (71% as of 2006) in high income countries. In low and middle income countries, taxes are account for 54% of the final price cigarettes.

In South Africa tax as a percentage of tobacco retail prices fell to approximately 20% around 1990, but has subsequently risen to nearly 40%. As a result, consumption deceased from around four cigarettes per adult per day to two over a decade and adult lung cancer rates may be falling. The recent tax increases in Poland have doubled the consumer price of cigarettes and reduced consumption.

- Asian Tribune -

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