Higher taxes are the key to cutting cigarette consumption, especially among the poor, the young and the relatively uneducated, according to a major new publication.
A 10 per cent rise in cigarette prices would motivate about 42 million people worldwide to stop smoking. The World Health Organisation and World Bank researchers estimate that raising taxes could prevent about 10 million tobacco-related deaths.
The 512-page publication is the outcome of a three-year research project by a team of economists, epidemiologists, public health specialists and lawyers from 13 countries.
Cigarette-tax increases have the greatest impact on consumption in low and middle-income countries. Conversely, high-income countries see a greater positive impact on cigarette-tax revenues. The Republic could expect a 6.7 per cent rise in revenues and a 3 per cent reduction in tobacco consumption if a 10 per cent rise in prices was implemented, according to the World Bank.
The report also addresses the cost of healthcare. Despite their shorter lifespan, smokers incur higher medical costs than non-smokers. In high-income countries, the treatment of tobacco-related diseases consumes up to 15 per cent of annual health spending. The authors argue that in such countries, a comprehensive programme could be implemented for as little as 0.1 per cent of public spending on health.
Concern has been expressed by some governments that raising the price of cigarettes would result in increased smuggling and sales of contraband tobacco products. However, Prof Frank Chaloupka, professor of economics at the University of Illinois and joint editor of the publication, says a more effective response would be to keep taxes high and crack down on smuggling.
"Prominent tax stamps, serial numbers, special package markings, health warnings labels in local languages and better tracking systems are effective against smuggling," he said.
The report also calls for a package of measures not related to price to help reduce demand for tobacco products, including a ban on advertising and promotion, better consumer information and smoking restrictions in public places and workplaces.