Tobacco Pricing

State Policy

A renewed effort to increase state tobacco tax (ID)
A coalition of health groups in Idaho wants to increase the cigarette tax in the state by $1.25, which would bring the cigarette tax to $1.82. The coalition’s proposal also includes similar tax increases for other tobacco products. The coalition anticipates that the tax increase would deter youth smoking and that the extra tax money would bring in an extra $50 million a year for smoking cessation and other health programs. Although advocates feel there is public support for a tax increase, some government officials believe it may be difficult to pass a tax in the next legislative session because the state is not as badly in need of revenue as it was last year. Click here to read more.

Bid afoot in Maryland to raise tax on cigars and more (MD)
A Maryland public health coalition has adjusted its tobacco control policy strategy, recognizing that political leaders will be unlikely to pass a cigarette tax in 2012. The Maryland Citizens’ Health Initiative is instead advocating for a tax increase on cigars and smokeless tobacco, as a recent state report shows that youth use of these products has increased, and polls show strong public support for raising the tax on these products to a rate comparable to the state’s $2 cigarette tax. Although Maryland’s cigarette tax rate has been raised three times since 1999, the taxes on cigars and smokeless tobacco have not changed since that time. Vincent DeMarco, the president of the group, says raising cigar and smokeless tobacco taxes would help deter young people from using these products, and would fund the state’s tobacco control program and community health programs. Click here for more details.

top

International

Indonesia to raise cigarette excise by 15% on January 1 (Indonesia)
In an effort to reduce tobacco use, the Indonesian government will increase the nation’s tobacco tax by 15% starting January 1, 2012. The government believes that people will be left with only two choices, to quit smoking or to switch to a lower priced product. Officials hope most people will decide to quit smoking. Read more by clicking here. In the article, a tobacco industry representative cites a statistic from the World Health Organization (WHO) that a 10% increase in cigarette prices leads to a 4% decrease in cigarette consumption in a developed country, but the effect on consumption is greater in a developing country, resulting in approximately an 8% reduction in consumption.

top

Back to Table of Contents