Increasing tobacco taxes by less than 5% is ineffective: Lessons from 2000-2018 surveys in France
Introduction France has an erratic anti-smoking policy. Effectives measures follow phases of stagnation or even regression. Until recently, taxation policies were decided only in the short term. These variations give the opportunity to analyze the effect of the price increase on cigarette sales. Me...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
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European Publishing
2019-03-01
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| Series: | Tobacco Prevention and Cessation |
| Subjects: | |
| Online Access: | https://www.tobaccopreventioncessation.com/Increasing-tobacco-taxes-by-less-than-5-is-ineffective-Lessons-from-2000-2018-surveys,105195,0,2.html |
| _version_ | 1797337939014844416 |
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| author | Bertrand Dautzenberg Marie-Dominique Dautzenberg |
| author_facet | Bertrand Dautzenberg Marie-Dominique Dautzenberg |
| author_sort | Bertrand Dautzenberg |
| collection | DOAJ |
| description | Introduction
France has an erratic anti-smoking policy. Effectives measures follow phases of stagnation or even regression. Until recently, taxation policies were decided only in the short term. These variations give the opportunity to analyze the effect of the price increase on cigarette sales.
Methods
From 2000 to 2018 we study change in yearly sales of cigarettes in metropolitan France to (source OFDT) to the price of the top sale cigarette pack (year n/ year n-1). In the case of an increase during the year, a monthly weighting is carried out. The results are expressed as the elasticity. If a price increases by 10% and sales fall by 6% the elasticity will be 0.6, it will also be 0.6 if a 5% increase price leads a 3% drop in sales).
Results
From 2000-2018, the 3 price increases >10% caused a sharp tobacco sales decline (0.9 elasticity). The 2 increases of 6-9% were almost as effective (elasticity 0.84). The 2 increases of 5% price resulted in a lower response (0.47 elasticity). The 5 small price increases <4.5% provide minimal response (0.16 elasticity). Increase of cigarette sales has been observed during the 4 years without price increase.
Conclusions
An above 6% step price (taxes) increase is needing to have significant public health effect. A 10% step increase is optimal Therefore any increase of 6% or better 10% to lower tobacco consumption without reducing the resources of the states. |
| first_indexed | 2024-03-08T09:23:52Z |
| format | Article |
| id | doaj.art-43b84fb1fd534e3b9aab26b27f9297dd |
| institution | Directory Open Access Journal |
| issn | 2459-3087 |
| language | English |
| last_indexed | 2024-03-08T09:23:52Z |
| publishDate | 2019-03-01 |
| publisher | European Publishing |
| record_format | Article |
| series | Tobacco Prevention and Cessation |
| spelling | doaj.art-43b84fb1fd534e3b9aab26b27f9297dd2024-01-31T10:30:35ZengEuropean PublishingTobacco Prevention and Cessation2459-30872019-03-015Supplement10.18332/tpc/105195105195Increasing tobacco taxes by less than 5% is ineffective: Lessons from 2000-2018 surveys in FranceBertrand Dautzenberg0Marie-Dominique Dautzenberg1French alliance against tobacco, FranceParis sans tabac, FranceIntroduction France has an erratic anti-smoking policy. Effectives measures follow phases of stagnation or even regression. Until recently, taxation policies were decided only in the short term. These variations give the opportunity to analyze the effect of the price increase on cigarette sales. Methods From 2000 to 2018 we study change in yearly sales of cigarettes in metropolitan France to (source OFDT) to the price of the top sale cigarette pack (year n/ year n-1). In the case of an increase during the year, a monthly weighting is carried out. The results are expressed as the elasticity. If a price increases by 10% and sales fall by 6% the elasticity will be 0.6, it will also be 0.6 if a 5% increase price leads a 3% drop in sales). Results From 2000-2018, the 3 price increases >10% caused a sharp tobacco sales decline (0.9 elasticity). The 2 increases of 6-9% were almost as effective (elasticity 0.84). The 2 increases of 5% price resulted in a lower response (0.47 elasticity). The 5 small price increases <4.5% provide minimal response (0.16 elasticity). Increase of cigarette sales has been observed during the 4 years without price increase. Conclusions An above 6% step price (taxes) increase is needing to have significant public health effect. A 10% step increase is optimal Therefore any increase of 6% or better 10% to lower tobacco consumption without reducing the resources of the states.https://www.tobaccopreventioncessation.com/Increasing-tobacco-taxes-by-less-than-5-is-ineffective-Lessons-from-2000-2018-surveys,105195,0,2.htmltobacco taxes |
| spellingShingle | Bertrand Dautzenberg Marie-Dominique Dautzenberg Increasing tobacco taxes by less than 5% is ineffective: Lessons from 2000-2018 surveys in France Tobacco Prevention and Cessation tobacco taxes |
| title | Increasing tobacco taxes by less than 5% is ineffective: Lessons from 2000-2018 surveys in France |
| title_full | Increasing tobacco taxes by less than 5% is ineffective: Lessons from 2000-2018 surveys in France |
| title_fullStr | Increasing tobacco taxes by less than 5% is ineffective: Lessons from 2000-2018 surveys in France |
| title_full_unstemmed | Increasing tobacco taxes by less than 5% is ineffective: Lessons from 2000-2018 surveys in France |
| title_short | Increasing tobacco taxes by less than 5% is ineffective: Lessons from 2000-2018 surveys in France |
| title_sort | increasing tobacco taxes by less than 5 is ineffective lessons from 2000 2018 surveys in france |
| topic | tobacco taxes |
| url | https://www.tobaccopreventioncessation.com/Increasing-tobacco-taxes-by-less-than-5-is-ineffective-Lessons-from-2000-2018-surveys,105195,0,2.html |
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