Cigarette Tax Research Articles

Cigarette Taxation and the Searching Popularity of Electronic Cigarettes

Cigarette Taxation and the Searching Popularity of Electronic Cigarettes

Examining quit attempts and successful quitting after recent cigarette tax increases

As cigarette smoking rates decline, an important policy question is whether increasing cigarette taxes will continue to encourage smoking cessation. We tested this question following recent tobacco tax increases. Data were from the Minnesota Adult Tobacco Survey, a serial cross-sectional telephone survey conducted statewide, and was limited to past-year cigarette smokers in 2010 (n = 1029) and 2014 (n = 1382). Weighted estimates were calculated of the prevalence of past year smokers, smokers who attempted to quit smoking, and those who successfully quit by demographics, tobacco use, use of evidence-based cessation assistance to quit, and smoker perceptions of the tax increases. Among past year smokers, almost 60% reported a quit attempt in both years, 12.8% successfully quit in 2010 and 15.6% in 2014. Although older age, daily smoking, mean cigarettes per day, and more days of e-cigarette use, were associated with quit attempts in unadjusted models, only the perceived tax increase effect (AOR = 8.9; 95% CI 6.3–12.5) and low nicotine dependence (AOR = 1.9, 95% CI 1.3–2.7) were associated with making a quit attempt in adjusted models. Successful 12-month quits were predicted by college education (AOR = 3.2, 95% CI 1.3–7.8), the use of cessation support (AOR = 2.1, 95% CI 1.3–3.6), and reporting the tax increase helped maintain a quit (AOR = 12.3, 95% CI 7.5–20.1). These findings suggest that a large tax increase is effective in promoting quitting even in the presence of strong tobacco control measures such as indoor smoking bans and other smoking restrictions, mass media campaigns, and universal access to cessation support.

Potential health impacts of increasing the cigarette tax in Viet Nam.

Even after the implementation of MPOWER, Viet Nam's cigarette tax remains only 36% of the retail price. This falls short of the World Health Organization's (WHO's) recommendation that the tax share be 70% of the retail price. To assess the health impact of different levels of cigarette taxation by estimating the impact on reducing tobacco consumption and smoking-attributable deaths (SADs). A static model was developed based on a previous study by Jha et al. The model calculates the reduction in tobacco consumption, estimating the number of SADs averted and savings in health-related costs. The scenarios for increasing cigarette taxes were aligned with the Viet Nam Tobacco Tax Simulation Model developed by the WHO and the Vietnamese Ministry of Finance. Four scenarios proposed by the Ministry of Finance and the Ministry of Health would prevent an estimated 63 339-581 165 SADs, equivalent to mortality costs of US$577-5296 million. In the ideal scenario, 6 258 361 SADs would be prevented and would save US$57.0 billion. Future young smokers would see the greatest health benefits of increasing the cigarette tax. Increasing the cigarette tax could reduce the substantial health impact of tobacco use, and further result in significant financial savings across society. Viet Nam should support efforts to further increase the cigarette tax following WHO recommendations.

Perhitungan Alokasi Dana Bagi Hasil Pajak Rokok Pada Badan Pengelola Pendapatan Daerah Provinsi Jawa Tengah Triwulan Iv Tahun 2016

The reseach aims to know determine the procedure for calculating the allocation of funds from cigarette tax revenues quarter IV to Regency / City of Central Java Province On Central Java Regional Income Management Board. Writing method used are the method of description and exposition. The calculation of the allocation of revenue sharing funds for tobacco tax quarter IV which is in use is the realization of 2016. The results of the calculating the allocation of funds from cigarette tax revenues quarter IV to Regency / City between of Central Java Province On Central Java Regional Income Management with regulation governer 67 in 2014 Show result different. Different because that the share of cigarette tax data the number of population used is the data of population in 2014, when it should be calculated with the data of the population in 2015.

Electronic Cigarette Themes on Twitter: Dissemination Patterns and Relations with Online News and Search Engine Queries in South Korea

ABSTRACTThis study examines multiple aspects of e-cigarette mentions on different online media channels during the announcement and implementation of a cigarette tax increase policy in South Korea. It consists of three parts. First, a Naive Bayes classifier was used to sort 59,147 tweets about e-cigarettes into five pre-designated themes — promotion, health, policy, product evaluation, and price — and to determine their relative prevalence. Second, social network analysis was used to identify the themes’ dissemination patterns. Third, the themes were examined for their associations with e-cigarette mentions in two other media channels — online news articles (n = 580) and search engine queries (64 weeks of Google Trends data). Results show that the most prevalent tweet theme was product evaluation, and the theme with the largest increase during the data collection period was promotion. Promotion-themed tweets were the least connected with tweets about the other five themes, while health-themed tweets were the most connected. Finally, product evaluation-themed tweets exhibited the strongest correlation with search engine query count and had the largest explanatory power.

Relative Tax Rates, Proximity, and Cigarette Tax Noncompliance: Evidence from a National Sample of Littered Cigarette Packs

We analyze data about cigarette tax compliance from the first US-based national scale littered cigarette packs collection. We code each pack based on whether an appropriate tax had been paid at the location where it was found. Noncompliance across our 132 sample communities ranges from 0 percent to 100 percent with an appropriately weighted mean of 21 percent. We provide evidence that noncompliance is due to both cross-border shopping and cigarette trafficking. Ordinary least squares and binomial logit regressions demonstrate that the financial incentive for noncompliance is the most important explanatory variable and has a statistically and quantitatively significant impact on noncompliance. We find mixed evidence about the extent to which tax avoidance varies with distance to lower-tax borders. Our simulations show that, even after accounting for increased noncompliance, virtually all areas in our study would experience increases in tax revenue if they increased cigarette tax rates.

How Low-Income Smokers in New York Access Cheaper Cigarettes.

To understand the tobacco acquisition practices of low-income smokers in New York State in light of high cigarette prices due to high cigarette taxes. Eight focus groups with low-income smokers were conducted in spring 2015 and 2016 (n = 74). New York City (NYC) and Buffalo, New York. Low-income adults aged 18 to 65 who smoke cigarettes regularly. Qualitative analysis of focus group transcripts that explored differences and similarities by region. We used the interview guide-which covered the process of acquiring cigarettes and the impact of cigarette prices-as a framework for analysis to generate themes and subthemes (deductive coding). We also generated themes and subthemes that emerged during focus group discussions (inductive coding). Some smokers in Western New York have switched to untaxed cigarettes from Native American reservations, whereas low-income smokers in NYC described convenient sources of bootlegged cigarettes (packs or loosies) in their local neighborhood stores, through acquaintances, or on the street. Familiarity with the retailer was key to accessing bootlegged cigarettes from retailers. Smokers in this study could access cheaper cigarettes, which discouraged quit attempts and allowed them to continue smoking. The availability of lower priced cigarettes may attenuate public health efforts aimed at reducing smoking prevalence through price and tax increases.

Country-specific costs of implementing the WHO FCTC tobacco control policies and potential financing sources.

BackgroundOne of the major obstacles to the full implementation of the World Health Organization (WHO) Framework Convention of Tobacco Control (FCTC) tobacco control measures is the lack of sustainable financing resources.GoalTo update and simulate country-specific indicators that are highly relevant to the costs and financial resources of the treaty policy implementation. We also developed an Excel tool for simulation and assessed the aggregated-level indicators by the 2016 World Bank income groups.ApproachesUsing mostly 2016 data or 2014–15 data if 2016 one are not available, we updated five indicators relevant to the treaty implementation, which are the gap between current and desirable policy implementation, cigarette affordability, the costs of implementing best- buy tobacco control policies, the number of smoking-attributable deaths, and the simulated tax revenue resulting from a $1 tax increase. We also aggregated indicators and simulation results by the World Bank income groups, encompassing the five indicators and the reduction in smoking and in attributable deaths due to a hypothetical 1I$ tax increase. Finally, the policy implementation cost was compared with tax revenue and revenue increases.FindingsAs of 2016, smoking remains one of the leading causes of premature deaths worldwide while the implementation of best-buy tobacco control policies was below the recommended levels. Meanwhile, there was room to further increase cigarette taxes and prices, as cigarettes remained affordable in many countries. The total costs of implementing best-buy policies in the next 15 years merely account for 8.3% of the 2016 excise tax revenue, indicating that a small proportion of annual tax revenue could fund the implementation of tobacco control policies recommended by the WHO FCTC.ConclusionsIncreasing taxes could have a multiplier impact on curbing tobacco use through aiding the implementation of the WHO FCTC.

"I'm gonna get me a loosie" Understanding single cigarette purchases by adult smokers in a disadvantaged section of New York City.

This study seeks to update and expand our understanding of the perceptions and purchasing patterns of smokers of single cigarettes (‘loosies’) in disadvantaged urban areas. Semi-structured guides were used in thirteen focus groups with 67 self-identified adult smokers from the South Bronx section of New York City in summer 2013.There is wide availability of single cigarettes in the South Bronx, with legitimate stores overwhelmingly being the preferred venue for purchases. Single cigarettes are sold at higher per-unit prices than illicit packs. However, buyers of single cigarettes can achieve cost savings compared to legal, fully taxed cigarette packs. Apart from cost-savings, smokers opt for single cigarettes to reduce their personal cigarette consumption. There is a general perception of market resilience despite law enforcement intervention. However, law enforcement has a limiting effect on access to single cigarettes outside of an individual smoker's immediate neighborhood.The findings suggest that single cigarette sales are an important element of the illicit cigarette market in disadvantaged communities which should not be ignored in future research on the nature and extent of cigarette tax avoidance and evasion.

Motivations for Current E-Cigarette Use Among Adult Smokers in Malaysia

Background: Recommendations from WHO regarding the comprehensive ban on tobacco advertisements, promotions and scholarships (TAPS) have recently caused tobacco companies in shifting their market strategies to focus on promoting unregulated devices such as electronic cigarettes (ECs) and vapes. Aim: This study aims to explore the motivations of EC use among dual users and its associations with sociodemographic factors and smoking related characteristics under different regulatory environments in Malaysia. Methods: A total of 5823 dual users was collected using a multistage sampling study design. Data collection was conducted through intercept face-to-face interviews within 3 waves; wave 1 (May-September 2016), wave 2 (December 2016 - April 2017) and wave 3 (May-August 2017). The samples were drawn from 5 streets randomly (two in hotspot and three in nonhotspot locations) within stratified urban and rural areas in 14 states of Malaysia. Every fifth person passing an interview station in each street was approached. All statistical tests were conducted using PASW 18. Results: The top four self-reported motivations of using EC by dual users included “tasted better than conventional cigarettes” (85.1%), “to reduce the number of cigarettes smoked” (72.9%), “to quit smoking” (63.5%) and “increase price of cigarette taxes” (62.9%). Based on a multivariate analysis, respondents from states that have no current restrictions toward the sale and usage of ECs and who use ECs less than weekly (Adj.OR=2.54; 95% CI=1.93-3.34), weekly (Adj.OR=2.22; 95% CI=1.72-2.85) and daily users (Adj.OR= 1.77; 95% CI=1.36-2.31) were more likely to use ECs due to its better taste as compared with those who use ECs less than once a month. In states that have banned the sales and usage of ECs, there was a significant association between daily users of ECs and the four primary motivations. It was found that an increasing amount of cigarettes smoked per day (Adj.OR=2.46; 95% CI=1.59-3.81) had significantly influenced smokers in these states to more likely use ECs due to the increase price of cigarette tax. Conclusion: This study was conducted to show associations between smoking characteristics, EC use and self-reported motivations under different regulatory environments in Malaysia. Frequency of EC use was significantly associated with these self-reported motivations. Further research should be conducted to monitor EC use by Malaysians as well as to contribute to the formulation of EC policy in Malaysia.

Can cigarette taxes during pregnancy mitigate the intergenerational transmission of socioeconomic status?

Smoking during pregnancy is most prevalent among women with a low socioeconomic status and is negatively associated with important infant health measures such as birth weight. Cigarette taxes decrease smoking among pregnant women and lead to improved birth outcomes, especially among those with a low socioeconomic status. In this paper we investigate whether increasing cigarette taxes also translates into improved educational attainment of offspring from a low socioeconomic background. In order to answer this question, we exploit variation in cigarette taxes across U.S. states over time and analyze tax effects on grade retention and school enrollment among a large sample of adolescents representative of the population. We find that higher cigarette taxes during pregnancy are strongly associated with improved educational outcomes of children from a low socioeconomic background, but seem to have no effect on children from a higher socioeconomic background. Our findings therefore suggest that cigarette taxes can be an effective policy instrument for mitigating the propagation of a low socioeconomic status from one generation to the next.

State cigarette taxes and health expenditures: Evidence from dynamic spatial lag panel models

AbstractThis study explores the relationship between state cigarette taxes and state expenditures on health and hospitals. We address two major sources of endogeneity from (i) the relationship between tax rates and expenditure decisions and (ii) spatial dependence in expenditure policies by using tobacco production as an instrument for cigarette tax rates and through a dynamic spatial Durbin model. We estimate the cigarette tax rate expenditure elasticity to be 0.03 (SR) and 0.87 (LR) for state health spending and 0.05 (SR) and 0.79 (LR) for state hospital spending. Increases in cigarette taxes did not reduce state spending on health over this period.

Longitudinal Associations of Smoke-Free Policies and Incident Cardiovascular Disease: CARDIA Study.

Smoke-free legislation has been associated with lower rates of cardiovascular disease hospital admissions in ecological studies. However, prior studies lacked detailed information on individual-level factors (eg, sociodemographic and clinical characteristics) that could potentially confound associations. Our objective was to estimate associations of smoke-free policies with incident cardiovascular disease in a longitudinal cohort after controlling for sociodemographics, cardiovascular disease risk factors, and policy covariates. Longitudinal data from 3783 black and white adults in the CARDIA study (Coronary Artery Risk Development in Young Adults; 1995-2015) were linked to state, county, and local 100% smoke-free policies in bars, restaurants, and nonhospitality workplaces by Census tract. Extended Cox regression estimated hazard ratios (HRs) of incident cardiovascular disease associated with time-dependent smoke-free policy exposures. Models were adjusted for sociodemographic characteristics, cardiovascular disease risk factors, state cigarette tax, participant-reported presence of a smoking ban at their workplace, field center, and metropolitan statistical area poverty. During a median follow-up of 20 years (68 332 total person-years), 172 participants had an incident cardiovascular disease event (2.5 per 1000 person-years). Over the follow-up period, 80% of participants lived in areas with smoke-free policies in restaurants, 67% in bars, and 65% in nonhospitality workplaces. In fully adjusted models, participants living in an area with a restaurant, bar, or workplace smoke-free policy had a lower risk of incident cardiovascular disease compared with those in areas without smoke-free policies (HR, 0.75, 95% confidence interval, 0.49-1.15; HR, 0.76, 95% confidence interval, 0.47-1.24; HR, 0.54, 95% confidence interval, 0.34-0.86, respectively; HR, 0.58, 95% confidence interval, 0.33-1.00 for living in an area with all 3 types of policies compared with none). The estimated preventive fraction was 25% for restaurant policies, 24% for bar policies, and 46% for workplace policies. Consistent with prior ecological studies, these individual-based data add to the evidence that 100% smoke-free policies are associated with lower risk of cardiovascular disease among middle-aged adults.

Precision Prevention and Early Detection of Cancer: Fundamental Principles.

Prevention and early detection is critical for reducing the population cancer burden. Two approaches have been used: Population approaches change social norms (e.g., smoking bans) or impose incentives (e.g., cigarette taxes); high-risk strategies intervene upon individuals with elevated cancer risk (e.g., smoking cessation). Knowledge about carcinogenesis mechanisms, extreme exposures, and inherited susceptibility provides opportunities to develop precision prevention and early-detection (PPED) strategies. PPED aims to understand the basis of risk, identify groups that optimally benefit from interventions, characterize heterogeneity in intervention responses, optimize intervention timing, and minimize toxicities. We propose a framework around which PPED strategies can be developed. Currently available cancer prevention and early-detection approaches have the potential to reduce a large proportion of the cancer burden in the population. However, even if fully implemented, existing methods cannot fully eliminate the cancer burden. New PPED approaches that exploit the growing knowledge of molecular and biological cancer mechanisms should be developed and implemented. Cancer Discov; 8(7); 803-11. ©2018 AACR.

A simulation impact evaluation of a cigarette excise tax increase on licit and illicit cigarette consumption and tax revenue in 36 European countries.

To assess the impact of a simulated 10% tax-induced cigarette price increase on licit and illicit consumption and tax revenues in 36 European countries. Employing panel data for licit and illicit cigarette consumption, fixed effects regression models were applied for different income clusters. Total cigarette consumption dropped by about 3.1% as a result of the simulated tax-induced price increase. Annual illicit cigarette consumption increased by 1.52%, (95% confidence interval: 0.21, 2.83), while annual licit cigarette consumption decreased by 4.61% (95% confidence interval: -6.51, -2.72) in the observed 36 European countries. With total consumption decreasing by about 8%, the Czech Republic, Latvia, Lithuania, Poland and Slovakia were affected the most by the price hike. More specifically, licit consumption in these countries decreased by 18.43% (95% confidence interval: -19.91, -16.95) while illicit use increased by 10.99% (95% confidence interval: 6.01, 15.96). Moreover, the overall annual tobacco tax revenue increased by US$14.69 billion in the simulation. Results of the study suggest that European policy makers continue to implement tobacco taxation policies to control smoking prevalence and national health care expenditures. At the same time, efforts to kerb contraband activities along EU Eastern borders should be intensified.

Smoke screen: Estimating the tax pass‐through to cigarette prices in Pakistan

AbstractThis article estimates and compares the speed and magnitude of the tax pass‐through across major cigarette brands at different price points (budget, mainstream, and premium) in Pakistan by using a novel dataset of monthly observations on cigarette prices in 50 cities during the period 2004 to 2015. The empirical analysis indicates that the pass‐through of cigarette taxes to the final consumer price is fast but incomplete in Pakistan. The pass‐through coefficient is estimated to be in the range of 70 to over 90 percent across four major cigarette brands, and most of the pass‐through occurs contemporaneously within a period of 2 months. The results imply that a 1‐Pakistan rupee (PR) increase in taxation leads to an increase of PRs 0.8, on average, in cigarette prices. In other words, cigarette taxes are undershifted to consumers in Pakistan. With respect to the tax pass‐through at different price tiers (budget, mainstream, and premium), I find significant variation in the pass‐through coefficient, which is close to one for the premium cigarette brand and significantly lower for the budget and mainstream cigarette brands.

Association between tax structure and cigarette consumption: findings from the International Tobacco Control Policy Evaluation (ITC) Project

BackgroundRecent studies show that greater price variability and more opportunities for tax avoidance are associated with tax structures that depart from a specific uniform one. These findings indicate that tax...

Illicit Cigarette Trade in Five South American Countries: A Gap Analysis for Argentina, Brazil, Chile, Colombia, and Peru.

Because of its nature, it is very hard to measure illicit tobacco trade in any product. In the case of Latin American countries, there is scant information on the magnitude and characteristics of this cigarette trade. The goal of this article is to provide estimates on the evolution of the illicit cigarette trade in five South American countries: Argentina, Brazil, Chile, Colombia, and Peru. Gap analysis estimates for cigarette tax evasion/avoidance (a comparison on the evolution of the difference between registered cigarette sales and measured population consumption) are developed for Argentina, Brazil, Chile, Colombia, and Peru. Nationally representative surveys, conducted regularly, are used to measure population consumption. Confidence intervals constructed by bootstrapping sample estimates are generated to statistically evaluate the evolution of the gap. Illicit cigarette trade has increased as a percentage of total sales in Brazil in recent years. In the case of Argentina, after a relative decrease between 2005 and 2009, it seems to have stabilized. There is no statistical evidence to argue that there has been an increase of illicit cigarette trade in Chile, Colombia, and Peru, despite substantial price increases in Chile and tax increase in both Colombia and Peru. Using simple statistical methods, it is possible to assess the trend in illicit tobacco trade over time to better inform policy makers. Getting reliable and regular population consumption surveys can also help to track illicit tobacco trade. Claims by tobacco industry of a positive association between price/tax changes and illicit trade are unsubstantiated. Evolution of illicit cigarette trade in five Latin American countries shows different trajectories, not in line with tobacco industry estimates, which highlight the importance of producing solid, independent estimates. There are inexpensive methodologies that can provide estimates of the evolution of the relative importance of illicit trade and can be used to inform policy makers.

Electronic cigarette substitution in the experimental tobacco marketplace: A review

The evolution of science derives, in part, from the development and use of new methods and techniques. Here, we discuss one development that may have impact on the understanding of tobacco regulatory science: namely, the application of behavioral economics to the complex tobacco marketplace. The purpose of this paper is to review studies that examine conditions impacting the degree to which electronic nicotine delivery system (ENDS) products substitute for conventional cigarettes in the Experimental Tobacco Marketplace (ETM). Collectively, the following factors constitute the current experimental understanding of conditions that will affect ENDS use and substitution for conventional cigarettes: increasing the base price of conventional cigarettes, increasing taxation of conventional cigarettes, subsidizing the price of ENDS products, increasing ENDS nicotine strength, and providing narratives that illustrate the potential health benefits of ENDS consumption in lieu of conventional cigarettes. Each of these factors are likely moderated by consumer characteristics, which include prior ENDS use, ENDS use risk perception, and gender. Overall, the ETM provides a unique method to explore and identify the conditions by which various nicotine products may interact with one another that mimics the real world. In addition, the ETM permits the efficacy of a broad range of potential nicotine policies and regulations to be measured prior to governmental implementation.

Examining e-cigarette purchases and cessation in a consumer panel of smokers.

Examine correlates of initiation of e-cigarette use among smokers and determine the impact of e-cigarette use on cessation among smokers in a national U.S. consumer panel. This study used the Nielsen Homescan Panel data from 2011 to 2013, augmented with state-specific measures of tobacco control activities, to examine 1) correlates of single and repeat e-cigarette purchasing among panelists currently purchasing cigarettes; and 2) correlates of "cessation". Participating panelists scanned all retail purchases, and Nielsen recorded over 3 million product types. The key explanatory variable for cessation was e-cigarette purchase. Parallel analysis was conducted for conventional nicotine replacement therapy (NRT) purchase. Cessation was defined as no purchases for at least 6 months and no subsequent purchases until the end of 2013. Analysis was conducted in 2015. E-cigarettes tracked by Nielsen during this period were cig-a-like products resembling tobacco cigarettes in appearance. Single e-cigarette purchase was associated with whether the panelist resided in a single person male household and bought a higher volume of cigarettes. Repeat purchase was associated with higher state cigarette taxes, less stringent state public smoke-free policies, lower cigarette prices, and more frequent cigarette purchasing. Cessation was associated with repeat e-cigarette purchasing, repeat NRT purchasing, younger age, lower monthly cigarette volume, less frequent purchasing of cigarettes, less recent cigarette purchase at baseline, and single e-cigarette purchase before baseline. Both individual and policy variables were associated with e-cigarette use. Repeat e-cigarette purchase was associated with cigarette purchase discontinuation, as were various smoking intensity measures.