FCTC Article 6: Price and Tax Measures To Reduce The Demand of Tobacco
FCTC Article 6: Price and Tax Measures To Reduce The Demand of Tobacco
FCTC Article 6: Price and Tax Measures To Reduce The Demand of Tobacco
1. The Parties recognize that price and tax measures are an effective and important means of reducing tobacco
consumption by various segments of the population, in particular young persons.
2. Without prejudice to the sovereign right of the Parties to determine and establish their taxation policies, each
Party should take account of its national health objectives concerning tobacco control and adopt or maintain, as
appropriate, measures which may include:
a. implementing tax policies and, where appropriate, price policies, on tobacco products so as to contribute to the
health objectives aimed at reducing tobacco consumption; and
b. prohibiting or restricting, as appropriate, sales to and/or importations by international travellers of tax- and duty-
free tobacco products.
3. The Parties shall provide rates of taxation for tobacco products and trends in tobacco consumption in their
periodic reports to the Conference of the Parties, in accordance with Article 21.
Contents
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1Guiding Principles[1]
2Advantages
3Implementation
o 3.1Implementation - Sri Lanka
4Tobacco Unmasked Resources
5Notes
Guiding Principles[1]
Determining tobacco taxation policies is a sovereign right of the Parties.
Effective tobacco taxes significantly reduce tobacco consumption and prevalence.
Effective tobacco taxes are an important source of revenue.
Tobacco taxes are economically efficient and reduce health inequalities.
Tobacco tax systems and administration should be efficient and effective.
Tobacco tax policies should be protected from vested interests.
Advantages
Effective tobacco taxes helps to reduce these negative impacts through reduced consumption and
prevalence and also contribute to the reduction of governments’ expenditures for the health care
costs associated with tobacco consumption.[1]
Implementation
Raising tobacco taxes is considered as the least implemented measurement of the FCTC. Despite it
being identified to have more than 75% efficiency as a tobacco control intervention, only a few
countries have increased tobacco taxes to the best practice level. Only 10% of the world’s
population are living in countries with sufficiently high taxes. As by 2008, there were 22 countries
that already had taxes more than 75% of the retail price of a pack of cigarettes, and by 2014 11
countries newly joined the group. However there are still many countries with extremely low tobacco
tax rates, and some countries that do not charge a tobacco tax at all.[2]
Implementation - Sri Lanka
According to the WHO Report on the Global Tobacco Epidemic (2015), Sri Lanka falls among
countries with the highest tax incidence in the world. The report also indicates that developed
countries such as America, Japan, Singapore and Australia have far lower tax incidences when
compared to Sri Lanka.[2]
Notes
1. ↑ Jump up to:1.0 1.1 1.2 1.3 World Health Organization. Framework Convention on Tobacco Control,
2005, accessed March 2017
2. ↑ Jump up to:2.0 2.1 WHO report on the global tobacco epidemic, 2015.World Health Organization,
2015, accessed March, 2017
Categories:
FCTC
Tobacco Tax and Pricing Related Issues
• Policies that ensure protection from exposure to tobacco smoke (Article 8), especially in indoor work places,
public transport and indoor public places; • Policies that ensure regulation of the contents of tobacco products
and regulation of tobacco product disclosures ( Art 9 and 10);
• Policies regulating the packaging and labeling of tobacco products (Art 11) including Pictorial Health
Warnings within three years after entry into force of WHO FCTC for that country;
• Policies concerning education, communication, training and public awareness ( Art 12);
• Policies on tobacco advertising, promotion and sponsorship ( Art 13) ( TAPS) within five years of entry into
force of WHO FCTC for that country; and,
• Demand reduction programs concerning tobacco dependence and cessation ( Art 14).
CTCA is supporting governments in their effort to achieve their obligations under WHO FCTC, with a particular priority for
time bound obligations like the implementation of Pictorial Health Warnings (PHWs)