Price differentials of tobacco products: A cross-sectional analysis of 79 countries
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Author(s)
Kyriakos, Christina
Ahmad, Aulia
Chang, Kiara
Filippidis, Filippos
Type
Journal Article
Abstract
Introduction:
Increased taxation is one of the most effective tobacco control measures. Price differentials across tobacco product types may undermine the effectiveness of taxation policies by providing the option to switch to cheaper products rather than to quit. The aim of this study was to use commercial data to compare prices and price differentials of both cigarette and non-cigarette products across countries from all geographical regions.
Methods:
We analyzed 6920 price data points (i.e. product brands) from Euromonitor Passport 2016 for 12 types of tobacco products across 79 countries from the six WHO regions: Africa (n=5), Eastern Mediterranean (n=6), Europe (n=39), the Americas (n=15), South-East Asia (n=3), and Western Pacific (n=12). For each product and country, a price differential was computed as the percentage of minimum price to the median.
Results:
Median cigarette prices (US$) were highest in Western Pacific countries (4.00; range: 0.80–16.20) and European countries (3.80; range: 0.80–14.00), but lowest in African countries (2.00; range: 0.80–2.20). The medians of cigarette price differentials were largest in the Eastern Mediterranean (48.33%) and African regions (50.00%), but smallest in Europe (82.35%). Pipe tobacco and fine-cut tobacco were generally less expensive than cigarettes while cigars were the most expensive. However, there were wide variations in prices and price differentials across regions and tobacco products.
Conclusions:
We found substantial variations in prices and price differentials between countries and world regions across tobacco products, likely reflecting differences in taxation policies and structures. Findings identify types of tobacco products in specific geographical regions where price differentials are highest, thereby highlighting areas where taxation policies need improvement, for example through implementing specific excise taxes.
Increased taxation is one of the most effective tobacco control measures. Price differentials across tobacco product types may undermine the effectiveness of taxation policies by providing the option to switch to cheaper products rather than to quit. The aim of this study was to use commercial data to compare prices and price differentials of both cigarette and non-cigarette products across countries from all geographical regions.
Methods:
We analyzed 6920 price data points (i.e. product brands) from Euromonitor Passport 2016 for 12 types of tobacco products across 79 countries from the six WHO regions: Africa (n=5), Eastern Mediterranean (n=6), Europe (n=39), the Americas (n=15), South-East Asia (n=3), and Western Pacific (n=12). For each product and country, a price differential was computed as the percentage of minimum price to the median.
Results:
Median cigarette prices (US$) were highest in Western Pacific countries (4.00; range: 0.80–16.20) and European countries (3.80; range: 0.80–14.00), but lowest in African countries (2.00; range: 0.80–2.20). The medians of cigarette price differentials were largest in the Eastern Mediterranean (48.33%) and African regions (50.00%), but smallest in Europe (82.35%). Pipe tobacco and fine-cut tobacco were generally less expensive than cigarettes while cigars were the most expensive. However, there were wide variations in prices and price differentials across regions and tobacco products.
Conclusions:
We found substantial variations in prices and price differentials between countries and world regions across tobacco products, likely reflecting differences in taxation policies and structures. Findings identify types of tobacco products in specific geographical regions where price differentials are highest, thereby highlighting areas where taxation policies need improvement, for example through implementing specific excise taxes.
Date Issued
2021-10-19
Date Acceptance
2021-09-23
Citation
Tobacco Induced Diseases, 2021, 19 (80), pp.1-9
ISSN
1617-9625
Publisher
International Society for the Prevention of Tobacco Induced Diseases
Start Page
1
End Page
9
Journal / Book Title
Tobacco Induced Diseases
Volume
19
Issue
80
Copyright Statement
© 2021 Kyriakos C.N. et al. This is an Open Access article distributed under the terms of the Creative Commons Attribution 4.0 International
License. (https://creativecommons.org/licenses/by/4.0/)
License. (https://creativecommons.org/licenses/by/4.0/)
License URL
Identifier
http://www.tobaccoinduceddiseases.org/Price-differentials-of-tobacco-products-A-cross-sectional-analysis-of-79-countries,142550,0,2.html
Subjects
Science & Technology
Life Sciences & Biomedicine
Substance Abuse
Public, Environmental & Occupational Health
tobacco taxation price
differentials tobacco
products smoking WHO
regions
CIGARETTE PRICES
AFFORDABILITY
CONSUMPTION
TRENDS
WHO regions
price differentials
smoking
tobacco products
tobacco taxation
1103 Clinical Sciences
Publication Status
Published online
Date Publish Online
2021-10-19