Cigarette smoking and poverty in China

“…In 2012, the United Nations (UN) addressed heightened concerns about the impact of noncommunicable diseases in a High-Level Meeting of the UN General Assembly. The Declaration from this meeting notes the “increased burden that noncommunicable diseases impose through impoverishment from long-term treatment costs, and from productivity losses that threaten household incomes and the economies of Member States.” 4 Indeed, diseases caused by smoking account for around 3% of health expenditures in China, while out-of-pocket medical expenditures, due to smoking, impoverish more than 10 million Chinese households each year 5 , 6 …”

Section: Introductionmentioning

confidence: 99%

Early assessment of China’s 2015 tobacco tax increase

Goodchild

Zheng

2018

Bull. World Health Organ.

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In 2015, the Chinese government raised tobacco excise tax for the first time since 2009. Changing from previous practice, the State Tobacco Monopoly Administration raised its cigarette prices at the same time. We assessed the early impact of the 2015 tax increase on cigarette prices, sales volumes, tax revenue generation and the potential effect on prevalence of smoking in China. Between 2014 and 2016, the retail price of cigarettes increased on average by 11%, with the cheapest category of cigarette brands increasing by 20%. The average proportion of tax in the price of cigarettes rose from 51.7% to 55.7%. Annual cigarette sales decreased by 7.8%, from 127 to 117 billion packs. The increase in cigarette prices could be associated with a 0.2% to 0.6% decrease in the proportion of adults smoking, representing between 2.2 and 6.5 million fewer smokers. Tax revenues from cigarettes increased by 14%, from 740 to 842 billion Chinese yuan between 2014 and 2016, reflecting an extra 101 billion Chinese yuan in tax revenues for the government. The 2015 tax increase shows that tobacco taxation can provide measurable benefits to both public health and finance in China. The experience also highlights the potential for tobacco taxation to contribute to China’s broader development targets, including the sustainable development goals and Healthy China 2030. Looking forward, this link to development can be facilitated through multisectoral research and dialogue to develop consistent cross-sectoral objectives for tobacco tax policy design and implementation.

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“…Health care costs associated with tobacco and tobacco-related disease expenditure have been shown to be significant [ 72 ]. Consequently, reduction in tobacco use would be expected to lower these costs.…”

Section: Discussionmentioning

confidence: 99%

Cost-effectiveness analysis of population-based tobacco control strategies in the prevention of cardiovascular diseases in Tanzania

et al. 2017

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BackgroundTobacco consumption contributes significantly to the global burden of disease. The prevalence of smoking is estimated to be increasing in many low-income countries, including Tanzania, especially among women and youth. Even so, the implementation of tobacco control measures has been discouraging in the country. Efforts to foster investment in tobacco control are hindered by lack of evidence on what works and at what cost.AimsWe aim to estimate the cost and cost-effectiveness of population-based tobacco control strategies in the prevention of cardiovascular diseases (CVD) in Tanzania.Materials and methodsA cost-effectiveness analysis was performed using an Excel-based Markov model, from a governmental perspective. We employed an ingredient approach and step-down methodologies in the costing exercise following a government perspective. Epidemiological data and efficacy inputs were derived from the literature. We used disability-adjusted life years (DALYs) averted as the outcome measure. A probabilistic sensitivity analysis was carried out with Ersatz to incorporate uncertainties in the model parameters.ResultsOur model results showed that all five tobacco control strategies were very cost-effective since they fell below the ceiling ratio of one GDP per capita suggested by the WHO. Increase in tobacco taxes was the most cost-effective strategy, while a workplace smoking ban was the least cost-effective option, with a cost-effectiveness ratio of US$5 and US$267, respectively.ConclusionsEven though all five interventions are deemed very cost-effective in the prevention of CVD in Tanzania, more research on budget impact analysis is required to further assess the government’s ability to implement these interventions.

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Cigarette smoking and poverty in China

Cited by 42 publications

References 11 publications

Counting 15 million more poor in India, thanks to tobacco

Counting 15 million more poor in India, thanks to tobacco

Early assessment of China’s 2015 tobacco tax increase

Cost-effectiveness analysis of population-based tobacco control strategies in the prevention of cardiovascular diseases in Tanzania

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