Tobacco price policy David Simpson Director, International Agency on Tobacco and Health Visiting Professor, London School of Hygiene & Tropical Medicine Honorary Fellow, Clinical Trial Service Unit Editor, News Analysis, Tobacco Control journal

Strengths of taxation Known to be effective Effective immediately Most effective with young and poor No cost to government – earns revenue! Increases government revenue Revenue can boost health promotion 

Real price of cigarettes and annual cigarette consumption per adult (15 years of age and above), South Africa, Consumption per adult Real price Saloojee, Y.

Cigarette price & consumption (UK) Consumption Price Townsend J.

Cigarette price & tax revenue (UK) Tax revenue Price Townsend J.

Structure of cigarette taxation Tobacco tax Manufacturers’ influence limited Beneficial if high - By weight of tobacco Manufacturers reduce cigarette size EffectPublic health implications Specific (by weight or by cigarette) Beneficial - By cigaretteManufacturer increases size of cigarette Mostly beneficial Per valorum (by value) Manufacturers keep base levels low Limited benefit