Increase excise Reduces existing Government Increased revenue Administratively Significant and duty on tobacco consumption new excise duties easy to increase measurable to reach 70% of uptake of a major increased the excise duty. reduction in NCDs the retail price of source of NCDs. progressively over Strong resistance over the medium domestic and coming 3 years to can be expected to longer term. imported tobacco. Compliance reach 70% of from tobacco Reduction in Apply the excise ensures the retail price. industry. Need to wasted duty on all intended health ensure local expenditure on tobacco products, and revenue smallholders do cigarettes by the and not just benefits are not increase poor and the imported achieved. growing of local young as price products, to Reduces the tobacco leaf. increases take increase revenue, attractiveness and Need to ensure effect. Increased reduce affordability of compliance of revenue for consumption, and cigarettes to the new excise rates Ministry of be compatible young and the at customs Finance with WTO rules poor. borders and in (depending upon and obligations. small local trade price elasticities stores. and compliance). Tobacco companies lose production and sales over the medium term. Government revenue a winner. Local traders breaking the law a
Increase excise duty on tobacco to reach 70% of the retail price of domestic and imported tobacco. Apply the excise duty on all tobacco products, and not just imported products, to increase revenue, reduce consumption, and be compatible with WTO rules and obligations. Reduces existing consumption new uptake of a major source of NCDs. Compliance ensures the intended health and revenue benefits are achieved. Reduces the attractiveness and affordability of cigarettes to the young and the poor. Government excise duties increased progressively over coming 3 years to reach 70% of retail price. Increased revenue Administratively easy to increase the excise duty. Strong resistance can be expected from tobacco industry. Need to ensure local smallholders do not increase growing of local tobacco leaf. Need to ensure compliance of new excise rates at customs borders and in small local trade stores. Significant and measurable reduction in NCDs over the medium to longer term. Reduction in wasted expenditure on cigarettes by the poor and the young as price increases take effect. Increased revenue for Ministry of Finance (depending upon price elasticities and compliance). Tobacco companies lose production and sales over the medium term. Government revenue a winner. Local traders breaking the law a
893050WP0P13040PUBLIC00NCD0Roadmap.docx