Tobacco.org

Constraints to Effective Tobacco-Control Policies 

Although substantial evidence exists concerning the effectiveness of numerous policy interventions to reduce tobacco use, the use of these interventions globally is uneven and limited (see a more formal analysis in Chaloupka and others 2001). World Bank data reveal that ample room exists to increase tobacco taxes. In 1995, the average percentage of all government revenue derived from tobacco tax was 0.63 percent. Middle-income countries averaged 0.51 percent of government revenue from tobacco taxes, while lower-income countries averaged only 0.42 percent. An increase in cigarette taxes of 10 percent globally would raise cigarette tax revenues by nearly 7 percent, with relatively larger increases in revenues in high-income countries and smaller increases in revenues in low- and middle-income countries (Sunley, Yurekli, and Chaloupka 2000). Despite this evidence, price increases have been underused. Guindon, Tobin, and Yach (2002) studied 80 countries and found that the real price of tobacco, adjusted for purchasing power, fell in most developing countries from 1990 to 2000.

Why does so much variation exist in tobacco-control policies? The political economy of tobacco control has been inadequately studied. A few plausible areas of interest are outlined here. First, the recognition of tobacco as a major health hazard appears to be the impetus for most of the tobacco-control policies in many high-income countries. . . .

A key tool for addressing political opposition is earmarking tobacco taxes.

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