The power of tax and price

Only 26 countries, representing 8% of the world's population, have total taxes that account for at least three-fourths of retail cigarette prices, with only a handful of countries meeting WHO target of excises accounting for 70% of price. 6 More disturbing is the relative lack of progress in reaching these goals, with only 11 countries raising taxes sufficiently to meet the 75% target between 2008 and 2010, while six others that had been at that level fell behind as inflation eroded the share of price accounted for by specific taxes. 6 Moreover, relatively rapid development in many LMICs coupled with little or no change in tobacco taxes has resulted in cigarettes becoming much more affordable in these countries. 7 Furthermore, despite the substantial revenues generated by tobacco taxes, few governments dedicate even a small fraction of these revenues to support other tobacco control efforts. 6 The health and economic consequences of this inaction are enormous.