Continue Increasing Taxes on Tobacco Products

1. Continue Increasing Taxes on Tobacco Products

2. Background Misuse and abuse of tobacco • Increase rates of cancer • Lung cancer • Heart disease • Poor circulation • High blood pressure • Secondhand smoke cause premature birth and miscarriages

3. Key Facts on Tobacco Use • Tobacco use accounts for 6 million deaths per year • Tobacco kills up to HALF of its users • Deaths may increase to up to 8 million by 2030 • Over 7,000 known chemicals are found in secondhand smoke (the smoke that comes from a cigarette or that is let out by a smoker)

5. Community Preventative Services Task Force • Reviewed 116 studies on increasing tobacco products • Reduces the total amount of tobacco consumed • Reduces the prevalence of tobacco use • Increases the number of tobacco users who quit • Reduces initiation of tobacco use among young people • Reduces tobacco-related morbidity and mortality

6. General Tobacco Effects • Raising tobacco prices will decrease smoking prevalence • Decrease in tobacco use, decreases the level of poverty

7. U.S. State Cigarette Tax Rates, 2013

8. Important Considerations • The money made from a tobacco tax can be used to support health promotion and disease prevention programs • If tobacco prices increase by 10%: • lowers the smoking of cigarettes in many countries • youth and adult smokers decrease by 2.5% to 5%

9. Youth and Tobacco • Due to an increase in tobacco taxes of about $1.36 per pack, tobacco use among youths in Guam and the Mariana Islands decreased

10. WHO Framework Convention on Tobacco Control • Article 6 focuses on the price and tax measure to reduce the demand for tobacco.

11. Recommendations • Increasing taxation on tobacco products • Type of tax: Import duty, excise, and sales tax • Tax cigarettes • WHO tax stimulation model (TaXSim) • Very accessible simulator

12. Best Practices • Raise cigarette tax by at least 10% of a state’s average retail price per pack to achieve public health benefits. Anything less does not produce significant public health gains. • Include the definition of tobacco products, include little cigars, roll-your-own tobacco and other loose tobacco.

13. Continue increasing taxes on tobacco productsA Palauan Example Target Population: National Summary: RPPL 9-4, SD1, HD4 Tobacco Tax Increase • Palau had an existing importation tax for tobacco products at $2.00 • Palau Non Communicable Diseases (NCD) Unit worked with its traditional partners such as: the Cancer Coalition, the Coalition for Tobacco Free Palau, and the Ministry of Health (MOH), to further increase the tax on all tobacco products in Palau, including all imports and local products as well as electronic cigarettes • With the unified support also coming from Palau’s current administration, World Health Organization (WHO) and the civil society, Congress passed a law on September 2013 increasing the tobacco tax from $2.00 to $3.50 • The law also limits travelers coming in to Palau from carrying more than 1 opened pack of cigarettes; any extra cigarette packs, are subject to the $3.50 tobacco tax

14. Who to contact? James Rarick Technical Officer, Tobacco Free Initiative WHO Western Pacific Regional Office Manila, Philippines E-mail: rarickj@wpro.who.int