Tobacco industry's price games undermine taxation policies

NCD Alliance | Blog | 11 August 2022
Increasing tobacco tax to increase its price to consumers and therefore reduce its affordability is one of the most effective public health measures to curb the tobacco epidemic, and one that generates government revenue.
However, a review that systematically assessed global literature on the tobacco industry’s (TI) response to excise tax policies found that the TI responds to tax increases in multiple ways. It uses a variety of sophisticated pricing strategies to weaken tax policies as they seek to maintain and enhance their profitability.