Strategies for NCD Risk Factors(cont..)

Table 7.1 Tobacco prevention and control policies in South Asia

Source: WHO 2008b.

Increase and Harmonize Tobacco Taxation to Reduce Consumption

The most cost-effective policy tool for tobacco control is taxation of tobacco products. It has been highly effective in reducing prevalence of smoking in both developed and developing countries (World Bank 2006), and FCTC signatories are committed to levy excise taxes on tobacco products.

Studies have estimated that for every 10 percent increase in the price of tobacco, consumption of tobacco products can be expected to decrease by 2.7 percent in Bangladesh, 8.8 percent in Nepal, and 5.3 percent in SriLanka (Adeyi et al. 2007) and by 4–9 percent in India, depending on the type of tobacco product (John 2008b).

While raising tobacco taxes may increase government revenues and may reduce the number of smokers, it can also prompt smokers to switch to cheaper products, such as bidis, a much less expensive—but equally harmful—form of smoked tobacco, and it can provide an incentive for smuggling if the price of cigarettes is lower in neighboring countries.

Tax policies vary widely across countries, and across different tobacco products within the same country. The excise tax combined with all other taxes ranges from nearly 75 percent in Sri Lanka for a 20 piece pack of the most sold brand of cigarettes to under 10 percent in Afghanistan (Figure 7.1). In addition, tax on bidis is only a fraction of that on cigarettes.