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Cigarette affordability in Europe.

Evan Blecher1, Hana Ross, Maria E Leon

  • 1International Tobacco Control Research, American Cancer Society, Atlanta, Georgia, USA. evan.blecher@cancer.org

Tobacco Control
|October 25, 2012
PubMed
Summary
This summary is machine-generated.

European Union (EU) membership significantly raises cigarette excise taxes and prices, making them less affordable, especially in new member states. Despite this, per-capita cigarette consumption declined across most European countries studied.

Keywords:
EconomicsPriceTaxation

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Area of Science:

  • Public Health
  • Health Economics
  • Tobacco Control Policy

Background:

  • Cigarette taxes and prices are key tobacco control measures.
  • European Union (EU) tax policies aim to harmonize excise duties across member states.
  • Understanding the impact of EU accession on tobacco product affordability and consumption is crucial.

Purpose of the Study:

  • To analyze trends in cigarette excise taxes, real prices, and affordability in Europe.
  • To examine the impact of EU-wide tax policies on new member states.
  • To assess the effect of these policies on per-capita cigarette consumption.

Main Methods:

  • Analysis of data from 37 European countries (27 EU, 10 non-EU) between 2004 and 2010.
  • Utilized data from the European Commission and the Economist Intelligence Unit.
  • Compared excise tax burden, real prices, affordability, and consumption changes between existing and new EU member states.

Main Results:

  • Excise tax burden increased significantly in new EU member states (mean 63.8% in 2010) compared to existing ones (mean 59.4%).
  • Cigarette prices and excise taxes rose more aggressively in new member states, narrowing the affordability gap.
  • Per-capita cigarette consumption declined in most existing and new EU member states.

Conclusions:

  • EU accession leads to substantial increases in excise taxes and prices, reducing cigarette affordability.
  • EU tax policies, including the excise tax floor, drive higher taxes and prices in new member states.
  • Despite varying affordability trends, declining cigarette consumption was observed across most European countries.