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Tobacco Control

Raising Cigarette Taxes Reduces Smoking

RAISING CIGARETTE TAXES REDUCES SMOKING, ESPECIALLY AMONG KIDS (AND THE CIGARETTE COMPANIES KNOW IT) – FULL REPORT HERE

The cigarette companies have opposed tobacco tax increases by arguing that raising cigarette prices would not reduce adult or youth smoking. But the companies’ internal documents, disclosed in the tobacco lawsuits, show that they know very well that raising cigarette prices is one of the most effective ways to prevent and reduce smoking, especially among kids.

  • Philip Morris: Of all the concerns, there is one – taxation – that alarms us the most. While marketing restrictions and public and passive smoking [restrictions] do depress volume, in our experience taxation depresses it much more severely. Our concern for taxation is, therefore, central to our thinking …
  • Philip Morris: When the tax goes up, industry loses volume and profits as many smokers cut back.
  • RJ Reynolds: If prices were 10% higher, 12-17 incidence [the percentage of kids who smoke] would be 11.9% lower.
  • Philip Morris: It is clear that price has a pronounced effect on the smoking prevalence of teenagers, and that the goals of reducing teenage smoking and balancing the budget would both be served by increasing the Federal excise tax on cigarettes.
  • Philip Morris: Jeffrey Harris of MIT calculated…that the 1982-83 round of price increases caused two million adults to quit smoking and prevented 600,000 teenagers from starting to smoke…We don’t need to have that happen again.
  • Philip Morris: A high cigarette price, more than any other cigarette attribute, has the most dramatic impact on the share of the quitting population…price, not tar level, is the main driving force for quitting.

The cigarette companies have even publicly admitted the effectiveness of tax increases to deter smoking in their required filings with the U.S. Securities and Exchange Commission.

  • Philip Morris: Increases in excise and similar taxes have had an adverse impact on sales of cigarettes. Any future increases, the extent of which cannot be predicted, may result in volume declines for the cigarette industry.
  • Loews/Lorillard Tobacco: Significant increases in federal and state excise taxes on cigarettes . . .have, and are likely to continue to have, an adverse effect on cigarette sales.
  • R.J. Reynolds: Substantial increases in state and federal excise taxes on cigarettes. . . have had and will likely continue to have an adverse effect on cigarette sales.

Economic Research On Cigarette Tax Increases Reducing Smoking.

Numerous economic studies in peer-reviewed journals have documented that cigarette tax or price increases reduce both adult and underage smoking. The general consensus is that every 10 percent increase in the real price of cigarettes reduces overall cigarette consumption by approximately three to five percent, reduces the number of young-adult smokers by 3.5 percent, and reduces the number of kids who smoke by six or seven percent. 8 Research studies have also found that:

  • Among all adults or all youths, cigarette price increases work even more effectively to prevent and reduce smoking among males, Blacks, Hispanics, pregnant women, and lower-income persons.
  • Cigarette price increases not only reduce youth smoking but also reduce the number of kids who smoke marijuana and the amount of marijuana consumed by continuing regular users.
  • Higher taxes on spit tobacco reduce its use, particularly among young males.

Wisconsin Cigarette Tax Increase Benefits

BENEFITS FROM A 125-CENT CIGARETTE TAX INCREASE IN WISCONSIN

Current State Cigarette Tax: 77 Cents Per Pack (30th among all states)
Smoking-caused costs in state per taxed pack sold: $9.53
Average retail price per pack: $4.08 (state share from excise and sales taxes: $0.96)
Annual health care expenditures in the Wisconsin directly caused by tobacco use: $2.02 billion
Total state Medicaid program smoking costs each year: $480.0 million
Annual state cigarette tax revenue: $294.3 million (2005)
Last Wisconsin Cigarette Tax Increase: 10/1/2001

Projected Benefits From Increasing the State Cigarette Tax By 125 Cents Per Pack

  • New state cigarette tax revenues each year: $252.8 million
  • Pack sales decline in state: -121.4 million
  • Percent decrease in youth smoking: 20.9%
  • Increase in total number of kids alive today who will not become smokers: 84,100
  • Number of current adult smokers in the state who would quit: 42,500
  • Number of smoking-affected births avoided over next five years: 11,700
  • Number of current adult smokers saved from smoking-caused death: 11,200
  • Number of kids alive today saved from later premature smoking-caused death: 26,900
  • 5-Year healthcare savings from fewer smoking-affected pregnancies & births: $19.9 million
  • 5-year healthcare savings from fewer smoking-caused heart attacks & strokes: $20.0 million
  • Long-term healthcare savings in state from adult & youth smoking declines: $1,875.5 million

Wisconsin Cigarette Tax Increase Benefits – Full Document Here

Smoking (Public Health) (Amendment) Bill 2005

James Middleton (a member of Clear The Air) has put in a big effort to inform the Bills Committe of relevant information regarding the Smoking Bill which was passed on 19th of October 2006:

November 10, 2006 11:02 AM Subject: Smoking (Public Health) (Amendment) Bill 2005

Dear Mr Middleton,

I am the legal adviser of the Bills Committee of the Smoking (Public Health) (Amendment) Bill 2005. I am pleased to inform you that the Bill was passed on 19 October 2006. I wish to express my gratitude for the materials you have sent to us. I read most of them and used the relevant parts in my research. After discussion for 6 months, finally the Government decided to abandon the grandfathering of Mild Seven and other trade marks.

Thanks very much.
Regards, Monna Lai ALA7

Hong Kong Anti-Tobacco Law

20 October, 2006

US judge refuses to let tobacco companies silence Hong Kong anti air-pollution group – agrees to hear Clear The Air arguments

With the Trademark “Marlboro Lights” at risk, Clear The Air may be able to accomplish what the Government and Legco failed to do in yesterday’s Smoking Ordinance amendment. On Oct. 10, Judge Kessler granted the pro-clean air organization permission to be heard in the US court.

The new Hong Kong anti-tobacco law, passed on Thursday, gives Philip Morris until 2008 to take the Marlboro Lights brand off the market. If the US judge agrees with Clear The Air, Philip Morris will be required show no objection to Clear The Air’s application for revocation of the “Marlboro LIGHTS” trademark in Hong Kong and anyone can then sell cigarettes with that name until 2008, destroying the value of the brand to Philip Morris

WHO Framework Convention on Tobacco Control

China and hence Hong Kong ratified the WHO Framework Convention on Tobacco Control and was given formal confirmation on the 11th of October 2005.

On 11 October 2005, the Government of China informed the Secretary-General of the following:

In accordance with the provision of article 153 of the Basic Law of the Hong Kong Special Administrative Region of the People’s Republic of China and article 138 of the Basic Law of the Macao Special Administrative Region of the People’s Republic of China, the Government of the People’s Republic of China decides that the WHO Framework Convention on Tobacco Control and the declaration made by the People’s Republic of China on the prohibition of the introduction of tobacco vending machines shall apply to the Hong Kong Special Administrative Region and the Macao Special Administrative Region of the People’s Republic of China.

In English: WHO FRAMEWORK CONVENTION ON TOBACCO CONTROL
In Chinese: 世界卫生组织烟草控制框架公约

The WHO FCTC: a global health treaty

The WHO Framework Convention on Tobacco Control (WHO FCTC) is the first global health treaty negotiated under the auspices of the World Health Organization. This convention is an evidence-based treaty that reaffirms the right of all people to the highest standard of health. It represents a paradigm shift in developing a regulatory strategy to address addictive substances; in contrast to previous drug control treaties, the WHO FCTC asserts the importance of demand reduction strategies as well as supply reduction issues.

The WHO FCTC was developed in response to the globalization of the tobacco epidemic. The spread of the tobacco epidemic is exacerbated by a variety of complex factors with cross-border effects, including trade liberalization, direct foreign investment, global marketing, transnational tobacco advertising, promotion and sponsorship, and the international movement of contraband and counterfeit cigarettes.

From its first preambular paragraph, which states that the “Parties to this Convention [are] determined to give priority to their right to protect public health”, the WHO FCTC redefines the role of international law in preventing disease and promoting health. The core demand reduction provisions in the Convention are contained in Articles 6-14, which detail the price, tax, and non-price measures necessary to reduce the demand for tobacco. The core supply reduction provisions are contained in Articles 15-17. Another novel feature of the Convention is the inclusion of a provision to address liability issues. Mechanisms for scientific and technical cooperation and exchange of information are set out in Articles 20-22.

This Convention shall enter into force on the ninetieth day following the date of deposit of the fortieth instrument of ratification, acceptance, approval, formal confirmation or accession with the Depositary. At that time, States Party to the WHO FCTC will become legally bound by its provisions. The Convention opened for signature on 16 June 2003 in Geneva, Switzerland. It remained open for signature at the United Nations Headquarters in New York, the Depositary of the treaty, until 29 June 2004. States that have signed the Convention have indicated that they will strive in good faith to ratify it and committed themselves not to undermine the objectives set out in it. Although the Convention is no longer open for signature, states that did not sign the WHO FCTC may nevertheless become a party to the treaty through accession, which is a one-step process equivalent to ratification.

The global network of state and non-state actors developed over the period of the negotiations will be important in preparing for the implementation of the Convention at country level. In the words of WHO’s Director General, Dr LEE Jong-wook:

The WHO FCTC negotiations have already unleashed a process that has resulted in visible differences at country level. The success of the WHO FCTC as a tool for public health will depend on the energy and political commitment that we devote to implementing it in countries in the coming years. A successful result will be global public health gains for all.

For this treaty implementation to materialize, the drive and commitment that was evident during the negotiations will need to spread throughout the national and local levels, so that the WHO FCTC becomes a concrete reality where it counts most: at the country level.

Passive Smoking Report

Going smoke-free

The medical case for clean air in the home, at work and in public places

A report on passive smoking by the Tobacco Advisory Group of the Royal College of Physicians, July 2005

Tobacco smoke kills more people in the UK than any other avoidable cause. Therefore, effective tobacco control policies have a major part in improving public health. Since publishing the White Paper Smoking kills in 1998, the Government has made progress in many areas, particularly in developing smoking cessation services and banning the advertising and marketing of tobacco products. But much more can be done.

One important area is the harm caused by passive smoking. The 1998 White Paper recognised this and contained proposals for a voluntary code of practice to prevent passive smoke exposure in most workplaces, and a Public Places Charter to reduce exposure to smoke in pubs, restaurants and other hospitality industry venues. Although the voluntary code of practice was drafted it was not implemented, and the Public Places Charter has failed.

This report sets out in detail the impact of passive smoking in the UK. It reviews the effectiveness, and the ethical and economic implications of legislating to prevent exposure, and concludes that the only viable solution is legislation to make all workplaces and public places smoke-free. The Scottish Parliament has already decided on this approach.

The primary reason for smoke-free workplaces and public places is to protect individuals against involuntary exposure to passive smoking and the associated health risks. However, comprehensive smoke-free policies offer more than simple protection against passive smoke. Smoke-free policies help smokers to give up smoking, and discourage young people from starting to smoke in the first place. They also protect children at home by helping parents to quit, or at least by encouraging them to make their homes smoke-free. The particular benefit to children and other vulnerable or disadvantaged people in our society are important additional justifications for smoke-free legislation.

This report demonstrates how smoke-free legislation will save lives, reduce health inequalities, and improve public health. Smoke-free policies are popular and they are highly effective. Introducing comprehensive smoke-free legislation should be a public health priority for the UK.

Email us for the full report: webmaster@cleartheair.org.hk 

Tobacco Smoke Identified as Toxic Air Contaminant

State of California – technical report citing Tobacco Smoke as a Toxic Air Contaminant

Proposed Identification of Environmental Tobacco Smoke as a Toxic Air Contaminant

Download the full report on the Proposed Identification of Environmental Tobacco Smoke as a Toxic Air Contaminant here.

This report, prepared by the staff of the Air Resources Board (ARB), contains an evaluation of exposures to environmental tobacco smoke (ETS) in California. This report is referred to as Part A, “Proposed Identification of Environmental Tobacco Smoke as a Toxic Air Contaminant.” The Office of Environmental Health Hazard Assessment (OEHHA) has developed a comprehensive health evaluation on exposures to environmental tobacco smoke, referred to as Part B. Together, these evaluations serve as the basis for ARB’s proposal to identify ETS by regulation as a toxic air contaminant (TAC).

Under the provisions of Assembly Bill 1807 (Health and Safety Code sections 39650-39662), the ARB is mandated to administer California’s TAC Program. The ARB’s exposure assessment is based, to the extent available, upon research and monitoring data, emissions inventory data, and information on exposures from data on ambient and indoor air environments, as well as, an assessment of children’s exposures (Health and Safety Code Sections 39650 et seq.). The Health and Safety Code, section 39655, also requires that each candidate TAC must meet the definition of a TAC, defined as “an air pollutant which may cause or contribute to an increase in mortality or in serious illness, or which may pose a present or potential hazard to human health.”

ETS entered the identification program in June 2001. Some of the information in this report is based upon data presented in the Office of Environmental Health Hazard Assessment’s (OEHHA) 1997 report: “Health Effects of Exposure to Environmental Tobacco Smoke” (OEHHA, 1997). Specifically, Chapter 2 (Exposure Measurement and Prevalence) of the OEHHA report was updated to include ETS exposure information developed subsequent to the data presented in the report (after 1995). The National Cancer Institute (NCI), acting for the U.S. Public Health Service, recognized the importance of the 1997 OEHHA report and incorporated it as part of their Smoking and Tobacco Control Monograph series (NCI, 1999).

This is the revised Scientific Review Panel (SRP) version of the report which includes the Executive Summary, Part A (exposure assessment), Part B (health effects), and Part C (responses to public comments) documents. This version of the report, along with the comments received on the public review version, will be considered by the SRP on Toxic Air Contaminants at a noticed public meeting.

The ARB’s consideration of ETS as a TAC will occur following review by the SRP. If the SRP approves the report, it will be presented to the ARB at a duly noticed public hearing, after a 45-day public comment period. If the ARB approves the report at a hearing and identifies ETS as a TAC, the information contained in the report will be used in the assessment of the need for control measures. Any consideration of control measures to reduce exposures to ETS, if identified as a TAC, will follow a separate rulemaking process, which allows for a thorough public process including workshops, and a public hearing.

Impact of Tobacco Tax Reforms on Tobacco Prices

Full report here

Impact of tobacco tax reforms on tobacco prices and tobacco use in Australia

Objective: To document the impact of changes to tobacco taxes on the range and price of tobacco sold during the period when the National Tobacco Campaign (NTC) was run.

Data sources: Information about brand availability, pack size, and price was extracted from Australian Retail Tobacconist. A retail observational survey was undertaken to monitor actual retail prices. Data on cigarette prices, brands, packet configurations, and outlets from which they were purchased were obtained from the benchmark and three follow up population telephone surveys conducted to evaluate the NTC.

Method: Data from the three sources were compared to see the extent to which the impact of tax changes had been offset by greater retail discounting and a more concerted effort by consumers to purchase cheaper products.

Results: Smokers were unable to cushion themselves from the sharp price increases that occurred during the third phase of the NTC. Both average recommended retail prices of manufactured cigarettes and average actual cigarette prices paid by smokers increased by 25% in real prices.

Conclusion: The fall in smoking prevalence over the first two phases of the NTC was substantially greater than would be expected due to tax changes alone. The fall in smoking consumption over the first two phases was slightly less than would be expected and in the third considerably higher than would be expected.

Licensing Tobacco Sellers

Tobacco sellers, like alcohol sellers, should be licensed – to prevent illegal sale to children, and to cover the costs of regulation including retailer education and compliance monitoring.

In 2002 the Commonwealth commissioned a report into the desirability and best practice arrangements for the licensing of tobacco retailers and wholesalers. The findings, endorsed by the Intergovernmental Committee on Drugs, are yet to be fully implemented.

The report, by the Allen Consultancy Group, examined both the benefits and the objections and concluded that there is “a strong case, based on economic and public health rationales, to introduce licensing of tobacco sellers”. The report said:
• Licenses should be held by all tobacco wholesalers and retailers.
• Compliance with general tobacco control laws should be the minimum operational standard required by a licence holder.
• There should be scope for conditions to be applied to licences where this supports compliance with tobacco control laws.
• A licence should be able to be refused or withdrawn if the responsible person has contravened tobacco control laws.
• Licence fees should be set to recover only the costs associated with the
o administration of the licensing scheme;
o enforcement of the licences including inspections; and
o provision of information to applicants and licensees to ensure their continued and future compliance.
• Tobacco sales licensing should be seen as a health issue and controlled by health officials who may contract out elements of the scheme (licensing, inspections, enforcement) to third parties.
• There should be a graduated penalty structure that includes warnings, penalties, prosecutions and scope for licence withdrawal.

Objections to tobacco licensing or registration schemes
The authors concluded that the impediments – industry concerns about the cost of the schemes, some jurisdictional hesitancy and the general regulatory move away from licensing – should be countered on grounds that tobacco licensing schemes are clearly in the public interest.

View the report at www.health.gov.au/internet/wcms/publishing.nsf/content/health-pubhlth-strateg-drugs-tobacco-other.htm/$FILE/licensing_tobacco.pdf

They’ve done it
Four Australian jurisdictions – South Australia, Western Australia, Tasmania and the ACT – require tobacco sellers to be licensed.

Tobacco Industry Scientific Strategies Aimed Against Environmental Tobacco Smoke Policies

The Smoke You Don’t See: Uncovering Tobacco Industry Scientific Strategies Aimed Against Environmental Tobacco Smoke Policies

Objectives.

This review details the tobacco industry’s scientific campaign aimed against policies addressing environmental tobacco smoke (ETS) and efforts to undermine US regulatory agencies from approximately 1988 to 1993.

Methods.

The public availability of more than 40 million internal, once-secret tobacco company documents allowed an unedited and historical look at tobacco industry strategies.

Results.

The analysis showed that the tobacco industry went to great lengths to battle the Environmental Tobacco Smoke issue worldwide by camouflaging its involvement and creating an impression of legitimate, unbiased scientific research.

Conclusions.

There is a need for further international monitoring of industry-produced science and for significant improvements in tobacco document accessibility. (Am J Public Health. 2001;91:1419–1423)

View the complete research paper here: http://tobacco.cleartheair.org.hk/documents/environmental-tobacco-smoke-policies.pdf