Background: Consumption of cigarettes and alcoholic beverages creates serious health consequences for individuals and overwhelming financial burdens for governments around the world. In Asia, a third stimulant -betel nuts -increases this burden exponentially. For example, individuals who simultaneously smoke, chew betel nuts and drink alcohol are approximately 123 times more likely to develop oral, pharyngeal and laryngeal cancer than are those who do not.

Background: This study uses cigarette price elasticity to evaluate the effect of a new excise tax increase on cigarette consumption and to investigate responses from various types of smokers.

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Low-income, poorly-educated smokers are most likely to purchase smuggled cigarettes. To alter such behaviour, government must understand the motivations and opinions of this population and create marketing messages targeted specifically to their needs.