Combustible cigarettes cost less to use than e-cigarettes: global evidence and tax policy implications
Tobacco control, 2017•tobaccocontrol.bmj.com
Background Some scholars suggest that price differences between combustible cigarettes
and e-cigarettes could be effective in moving current combustible smokers to e-cigarettes,
which could reduce tobacco-related death and disease. Currently, in most jurisdictions, e-
cigarettes are not subject to the same excise taxes as combustible cigarettes, potentially
providing the category with a price advantage over combustible cigarettes. This paper tests
whether e-cigarettes tax advantage has translated into a price advantage. Methods In a …
and e-cigarettes could be effective in moving current combustible smokers to e-cigarettes,
which could reduce tobacco-related death and disease. Currently, in most jurisdictions, e-
cigarettes are not subject to the same excise taxes as combustible cigarettes, potentially
providing the category with a price advantage over combustible cigarettes. This paper tests
whether e-cigarettes tax advantage has translated into a price advantage. Methods In a …
Background
Some scholars suggest that price differences between combustible cigarettes and e-cigarettes could be effective in moving current combustible smokers to e-cigarettes, which could reduce tobacco-related death and disease. Currently, in most jurisdictions, e-cigarettes are not subject to the same excise taxes as combustible cigarettes, potentially providing the category with a price advantage over combustible cigarettes. This paper tests whether e-cigarettes tax advantage has translated into a price advantage.
Methods
In a sample of 45 countries, the price of combustible cigarettes, disposable e-cigarettes and rechargeable cigarettes were compared.
Results
Comparable units of combustible cigarettes cost less than disposable e-cigarettes in almost every country in the sample. While the e-liquids consumed in rechargeable e-cigarettes might cost less per comparable unit than combustible cigarettes, the initial cost to purchase a rechargeable e-cigarette presents a significant cost barrier to switching from smoking to vaping.
Discussion
Existing prices of e-cigarettes are generally much higher than of combustible cigarettes. If policymakers wish to tax e-cigarettes less than combustibles, forceful policy action—almost certainly through excise taxation—must raise the price of combustible cigarettes beyond the price of using e-cigarettes.
tobaccocontrol.bmj.com
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