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Bloomberg dr henning on tobacco control
The document discusses the significant public health impacts of increased tobacco taxes, emphasizing their effectiveness in reducing consumption and generating revenue. It highlights the decrease in smoking rates in New York City correlating with higher taxes and the use of tax revenues to fund health promotion and tobacco control programs. The findings suggest that dedicated tobacco taxes can have dual benefits—reducing tobacco use and supporting health initiatives.
Bloomberg dr henning on tobacco control
- 1. 8/2/10 Advancing the tobacco tax agenda for health promo5on Kelly J. Henning, MD Bloomberg Philanthropies Health Promo:on Funding and Tobacco Tax Seminar UP College of Law, University of the Philippines Quezon City, June 22 2010 1 Tobacco Is Now the World’s Leading Single Agent of Death Unless urgent action is taken, tobacco will soon kill twice as many people and will kill 1 billion people this century 2 World Health Organization 1
- 2. 8/2/10 Raising Tobacco Taxes is Integral to Tobacco Control • The Par:es recognize that “price and tax measures are an effec:ve and important means of reducing tobacco consump:on.” Ar:cle 6, FCTC • “Increasing the price of tobacco through higher taxes is the single most effec:ve way to decrease consump:on and encourage tobacco users to quit.” MPOWER report 2008 • Tobacco taxes raise revenues AND yield significant public health gains 3 Tobacco Taxes in New York City 2
- 3. 8/2/10 Adult Smoking in NYC Down Almost 30% Since 1993 City and State 3-yr average 3-yr average tax increases 3-yr average Smoke-free workplaces Free patch programs Media campaigns % of adults Current NYC Tobacco Taxes • Total tax on a pack of cigare[es is almost $6.00 Excise Taxes Federal $1.01 State $2.75 City $1.50 Sales Taxes City & State $0.71 TOTAL $5.97 • Highest combined state/local tax in U.S. • NYC and NY State both specific taxes ($ per pack) • Total pack price is approximately $9.20 • Tax accounts for 65% of NYC pack price (World Bank noted level) 3
- 4. 8/2/10 Changes in CigareLe Excise Taxes NYC and NY State Total = $5.26 Total = $4.64 Total = $3.39 Total = $1.58 Smoking Prevalence Declined as NYS/NYC CigareLe Taxes Increased Adults 1997-‐2009 Federal tax increase NYS tax increase NYC and NYS tax increases 4
- 5. 8/2/10 Smoking Prevalence Declined as NYS/NYC CigareLe Taxes Increased Youth 1997-‐2009 Federal tax increase City and State tax increases tax NYS increase NYC and NYS tax increases Data to Advocate for Tax Increases • Data is a powerful tool – Baseline prevalence, consump:on, prices, brands – Tax structure and processes to increase taxes – Tracking changes over :me • Real prices • Reduc:on in tobacco use and prevalence • Lives saved • Revenues increased 5
- 6. 8/2/10 Tobacco Tax Revenues Tobacco Excise Tax Revenues NYC: Smoking Prevalence Decreased while Revenue Increased Nearly Tenfold 12 6
- 7. 8/2/10 Total Tobacco Tax Revenue FY 2001-‐2009 • NYC collected $946,198,0001 – 46% of tobacco tax revenue transferred to NYS – Remaining 54% goes to NYC General Fund • NY State collected $9,059,011,2492 – Tobacco tax revenue split between NYS General Fund and health care reform fund 1. The Office of the New York City Comptroller. Comprehensive Annual Financial Report of the Comptroller for the Fiscal Year Ended June 30, 2007. New York: October 31, 2007. 2. New York State Department of Taxation and Finance. Annual Statistical Report of New York State Tax Collections Statistical Summaries and Historical Tables. Available at: http://www.tax.state.ny.us/statistics/stat_fy_collections.htm Tobacco Excise Tax Revenues Mexico Tax Rates and Real Excise Revenues 1981-2008 • Do not decline when taxes are increased – even when accoun:ng for reduced consump:on Waters et al. The Economics of Tobacco and Tobacco Taxation in Mexico, 2010 • Taxes directly strengthen tobacco control • Revenues have a second round of benefits if invested in health priori:es, including tobacco control and health promo:on 14 7
- 8. 8/2/10 Using Tobacco Excise Tax Revenues • Dedicated tobacco taxes to support tobacco control ac:vi:es including “health promo:on founda:ons” and comprehensive tobacco control programs” – Thai Health Founda:on • Other countries dedicate part of tobacco tax or other tobacco-‐ related revenues for tobacco control and/or health promo:on: – India, Nepal, Peru, Estonia, Poland – Several US states – Poland (0.5%), Finland (0.75%), Iceland (0.9%) of tobacco tax revenues 15 Tobacco Excise Tax Revenues Thailand • A 2% tax surcharge earmarked for a broad agenda, including funding the Thai Health Promo:on Founda:on (Thai Health) • Autonomous state agency outside the formal structure of government. • Ac:vi:es – Tobacco control – Alcohol consump:on control – Traffic injuries, disaster preven:on – Health risk factors 16 8
- 9. 8/2/10 Tobacco control is underfunded 17 Country-‐level ques5ons for health promo5on founda5ons • Tobacco taxa:on – MPOWER: how much progress? – Tobacco tax levels: rela:ve to neighbors, region, best prac:ces – Tobacco excise tax structures – Tobacco excise tax revenues over :me – Use of tax revenues (general funds? specific uses?) • Health Promo:on – What structures exist, and how are they financed currently? • And how is tobacco control funded? – A key health promo:on ac:vity, itself underfunded 18 9
- 10. 8/2/10 Thank you 19 10