Projects per year
Method: Nielsen commercial data on UK tobacco sales data (2010 to 2015) were combined with official UK data on inflation and tax rates, to identify the source of real price increases.
Results: Between 2010-12, when there were unexpected large tax increases, industry driven price changes were small (16% of the price rise in FM and 20% in RYO), and changes were similar between market segments. Between 2013-15, when tax increases were smaller and expected, industry behaviour generally accounted for a larger share of price rises (33% FM, 48% RYO), but changes varied considerably by segment.
Conclusion: The industry has increased its prices beyond that required by tax changes, even when tax rises were larger and unexpected, although were notably smaller in such conditions. This suggests: 1) that the industry is not actually concerned by the threat of illicit, especially since RYO had the highest levels of industry driven price increases despite higher levels of illicit; and 2) there remains scope for further tax increases, which should be relatively large and unexpected.
|Number of pages||3|
|Early online date||25 Jul 2019|
|Publication status||Published - 31 Dec 2019|
- Tobacco Taxation
- Illicit Tobacco
- Tobacco prices
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- 1 Finished
Understanding the Impact of Tobacco Tax Increases and Tobacco Industry Pricing on Smoking Behaviours and Inequalities
1/09/14 → 31/12/21
Project: Central government, health and local authorities
- Management - Senior Lecturer (Associate Professor)
- Centre for Governance, Regulation and Industrial Strategy
- Institute for Policy Research (IPR)
- Marketing, Business & Society
- Centre for Business, Organisations and Society (CBOS)
- Tobacco Control Research Group (TCRG)
Person: Research & Teaching