Beyond excise taxes: a systematic review of literature on non-tax policy approaches to raising tobacco product prices

Abstract

Objective Raising the price of tobacco products is considered one of the most effective ways to reduce tobacco use. In addition to excise taxes, governments are exploring other policies to raise tobacco prices and minimise price dispersion, both within and across price tiers. We conducted a systematic review to determine how these policies are described, recommended and evaluated in the literature. Data sources We systematically searched six databases and the California Tobacco Control library for English language studies or reports, indexed on or before 18 December 2013, that included a tobacco keyword (eg, cigarette), policy keyword (eg, legislation) and a price keyword (eg, promotion). We identified 3067 abstracts. Study selection Two coders independently reviewed all abstracts and identified 56 studies or reports that explicitly described a public policy likely to impact the retail price of tobacco products through non-tax means. Data extraction Two coders independently identified tobacco products targeted by policies described, recommendations for implementing policies and empirical assessments of policy impacts. Data synthesis The most prevalent non-tax price policies were price promotion restrictions and minimum price laws. Few studies measured the impact of non-tax policies on average prices, price dispersion or disparities in tobacco consumption, but the literature includes suggestions for crafting policies and preparing for legal challenges or tobacco industry opposition. Conclusions Price-focused evaluations of well-implemented non-tax price policies are needed to determine whether they can deliver on their promise to raise prices, reduce price dispersion and serve as an important complement to excise taxes.

Availability, price and promotions for cigarettes and non-cigarette tobacco products: an observational comparison of US Air Force bases with nearby tobacco retailers, 2016

“…Finally, cigarette cartons were also available for purchase in all on-base stores, compared with only 61% of off-base community retailers. Pricing exerts a strong influence on tobacco consumption,11 and switching to discount brands30 and buying cigarettes in bulk through cartons37 38 are two strategies often employed by smokers to keep cigarettes affordable. Selling low price products even more cheaply on-base could thus contribute to tobacco relapse and initiation among Airmen.…”

Racial and Ethnic Differences in What Smokers Report Paying for Their Cigarettes

“…In addition, pricing policies that specifically target the low end of the pack price distribution, like minimum floor price laws similar to the one in New York City, might be more effective at reducing price variation than raising average prices through mechanisms like excise taxes. 36 If whites are often the beneficiaries of particularly cheap purchasing opportunities, as our data suggests, they may be the most impacted by minimum pricing laws. Additional research on the ways in which pricing markets are impacted by minimum price laws could be useful.…”

Tobacco retail policy landscape: a longitudinal survey of US states

“…For example, the lack of progress towards non-tax approaches to increasing price was surprising, especially given the well-documented relationship between tobacco prices and use, particularly among youth, as well as new evidence about the role of price promotions in targeting price-sensitive consumers 19. In addition, few states reported any policy activity to restrict retail advertising or implement health warnings, which reflects the legal challenges associated with restricting commercial speech and the chilling effects of the 2010 lawsuit against graphic health warning signs in New York City 5 13…”

“…However, the 2009 Family Smoking Prevention and Tobacco Control Act (FSPTCA) has clarified the authority that states and communities have to adopt new policies that restrict the time, place and manner of tobacco advertising and promotions 17 18. Other types of policies to regulate the retail environment for tobacco can decrease tobacco retailer density, increase tobacco product prices through non-tax approaches19 and extend laws that specifically pertain to cigarettes to all tobacco and other products, including cigars, snuff and e-cigarettes. A number of these policy priorities are not addressed by federal laws and thus are consigned to states and communities for regulation.…”