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Asian Tribune is published by World Institute For Asian Studies|Powered by WIAS Vol. 12 No. 2961

Seven strategies employed by the tobacco industry to undermine the impact of tax increases

By Manjari Peiris

These strategies have been used by the tobacco industry to avoid the impact of planned tobacco tax increases on their profits and outlines what governments can do to prepare effective responses.

This publication titled - Undermining Government Tax Policies: Common Strategies Employed by the Tobacco Industry in Response to Tobacco Tax Increases is designed to assist governments to monitor, anticipate and understand tobacco industry actions prior to tobacco tax increases.

Thus tobacco control partners are encouraged to use this document to strengthen their understanding of tobacco industry practices and to inform tax policymakers.

The seven strategies include of the following;

Stockpiling; changing product attributes or production processes, lowering prices, over-shifting prices, under-shifting prices, timing planned price increases to company advantages, and engaging in price discrimination and/or offering price promotions.

This document also describes country case studies on how the tobacco industry has employed these strategies.

Further, it provides guidance on measures that governments can take to counter tobacco industry actions to undermine tobacco tax increases and the type of data governments should collect in order to monitor tobacco industry actions in response to planned tobacco tax increases, in order to formulate effective response.

The Economics of Tobacco Control Project at the School of Economics, University of Cape Town works to expand current research in the economics of tobacco control and enhance the knowledge of economic and tax issues among tobacco control advocates and policymakers in sub-Saharan Africa.

Tobacconomics is a program based at the University of Illinois at Chicago comprising leading researchers focused on the economics of tobacco control policy. It makes available current and sound research about effective approaches to curbing tobacco use and their economic impact.

- Asian Tribune -

 Seven strategies employed by the tobacco industry to undermine the impact of tax increases
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