BY GLOBAL STATE OF TOBACCO HARM REDUCTION (GSTHR)
Taxation has long been regarded as one of the most effective tools by traditional tobacco control groups for controlling tobacco consumption. Tax on tobacco products is intended to serve two main purposes: to decrease demand by increasing prices, making these products less affordable and less appealing, and to generate government revenue. Critics, however, suggest that tax is a blunt instrument, contributing to the economic inequalities faced by people who smoke and driving illicit markets.
This Briefing Paper examines the current global situation regarding the taxation of safer nicotine products (SNP) and how this relates to product accessibility, before offering evidence-based policy recommendations for optimal taxation strategies in support of harm reduction goals and public health. Our primary focus is on nicotine vapes (e-cigarettes) and heated tobacco products (HTP) as these are the two dominant SNP categories with the most extensive data available. However, conclusions drawn here may apply to other SNP as well.
Our analysis centres on excise taxes, which differ from general levies like income tax or value-added tax (VAT). Unlike these broad-based taxes, excise taxes target specific products or activities, making them a critical area of interest in SNP taxation policy.