Increasing taxes on tobacco products has been shown to be one of the most effective means of reducing tobacco use, particularly among youth. However, taxes are not applied equally to different forms of tobacco which can lead to substitution of one tobacco product for another. Moreover, tax increases can be undermined if untaxed purchases or industry price manipulation are permitted. Therefore, it is important to ensure that taxes are collected on all products (including internet tobacco sales), price promotions are restricted and cigarette smuggling is curtailed.
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Report describing the relationship between product price and tobacco use. This report includes policy examples and related considerations and best practices.