Tobacco Price Increases Decrease Use
Economic research confirms that when tobacco prices increase, smoking decreases.
Every 10 percent increase in the real price of cigarettes reduces overall cigarette consumption by about three to five percent. It reduces the number of young-adult smokers by 3.5 percent. And it reduces the number of kids who smoke by about six or seven percent. Want to know more? On this page you can learn about how Nebraska's cigarette tax compares with other states; experiences in other states of drops in smoking after cigarette tax increase; and the impact of tax increases on youth tobacco use. Or view a presentation that highlights the benefits of higher tobacco prices and comprehensive programs that promote tobacco free kids and help adults quit tobacco use. | What's Happening
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Recent State Experiences
Whenever a state has significantly raised its cigarette tax rate, there has been a sharp drop in sales of cigarette packs, according to the Campaign for Tobacco Free Kids.
While some of the decline in pack sales comes from interstate smuggling and from smokers going to other lower-tax states to buy their cigarette, reduced consumption from smokers quitting and cutting back plays a more powerful role. As shown in more detail, below, nationwide data – which counts both legal in-state purchases and the vast majority of packs purchased through cross-border, Internet, or smuggled sales – shows that overall packs sales go down as state cigarette tax increases push up the average national price.
In-state evidence shows that state cigarette tax increases are prompting many smokers to quit or cutback.
For example, the Wisconsin Quit Line received a record-breaking 20,000 calls in the first two months after its $1.00 per cigarette pack increase (it typically receives 9,000 calls per year). In 2007, Texas and Iowa each increased their cigarette taxes by $1.00. At that time, the number of calls to the state quitlines were much higher compared to the year before. These efforts to quit by smokers after tax increases translate directly into lower future smoking rates. In Washington State, for example, adult smoking from the year before its 60-cent cigarette tax increase in 2002 to the year afterwards declined from 22.6 to 19.7 percent, reducing the number of adult smokers in the state by more than 100,000, despite overall population increases.
While some of the decline in pack sales comes from interstate smuggling and from smokers going to other lower-tax states to buy their cigarette, reduced consumption from smokers quitting and cutting back plays a more powerful role. As shown in more detail, below, nationwide data – which counts both legal in-state purchases and the vast majority of packs purchased through cross-border, Internet, or smuggled sales – shows that overall packs sales go down as state cigarette tax increases push up the average national price.
In-state evidence shows that state cigarette tax increases are prompting many smokers to quit or cutback.
For example, the Wisconsin Quit Line received a record-breaking 20,000 calls in the first two months after its $1.00 per cigarette pack increase (it typically receives 9,000 calls per year). In 2007, Texas and Iowa each increased their cigarette taxes by $1.00. At that time, the number of calls to the state quitlines were much higher compared to the year before. These efforts to quit by smokers after tax increases translate directly into lower future smoking rates. In Washington State, for example, adult smoking from the year before its 60-cent cigarette tax increase in 2002 to the year afterwards declined from 22.6 to 19.7 percent, reducing the number of adult smokers in the state by more than 100,000, despite overall population increases.
Source: Campaign for Tobacco Free Kids
Would you like further information about the impact of increased tobacco prices on tobacco use? View a presentation on the impact of cigarette tax increases by Dr. Frank Chaloupka, leading researcher on the impact of cigarette taxes on smoking and Distinguished Professor for the Center for Health Services Research at the University of Illinois at Chicago’s School of Public Health, or view a report on the impact of a significant cigarette tax increases on smoking from the Campaign for Tobacco Free Kids.
