Cigarette price level and variation in five Southeast Asian countries

Area of Science:

• Public Health
• Health Economics
• Tobacco Control Policy

Background:

• Tobacco excise tax policies and industry pricing strategies interact to influence cigarette prices.
• Understanding these dynamics is crucial for effective tobacco control in Southeast Asia.

Purpose of the Study:

• To analyze the impact of tobacco excise tax structures and industry pricing on cigarette prices in five Southeast Asian countries.
• To assess price levels and variations for cigarettes sold by stick and pack.

Main Methods:

• In-person retailer surveys were conducted in 2011 across Indonesia, Cambodia, Lao PDR, the Philippines, and Vietnam.
• Mean cigarette prices and price variations were calculated for single sticks, whole packs, and brand groups.

Main Results:

• Price variation for whole cigarette packs was higher in countries with ad-valorem excise taxes compared to those with specific excise taxes.
• Single stick prices were influenced by local currency denominations, often costing more per stick than when sold in packs.
• Indonesia's domestic brands were an exception to single sticks costing more than pack prices.

Conclusions:

• Tobacco industry strategies and excise tax structures significantly influence cigarette pack prices and variations.
• Currency denominations impact the retail pricing of single cigarettes.
• Implementing specific excise tax structures can decrease cigarette price variation, thereby enhancing the effectiveness of tobacco tax policies by limiting 'trade-down' opportunities for consumers.