Retail Price Surveillance of Tobacco in China

Dr. Jiang Yuan

Tobacco Control OfficeChina Center for Disease Control and Prevention

Price is the most effective policy to curb prevalence of smoking

Price tool is more susceptible to the youth and population in

poverty

Facilitate smokers to quit or reduce smoking amount

Increment of government revenue by increasing price of

tobacco

Ministry of Finance introduced policy on adjusting price of

tobacco in 2009. How ever, taxation policy didn’t change

correspondently, which brought no affect on tobacco control

17.5%18.3%

21.5%

21.7%21.5%21.6%

19.2% 18.9%

16.9%

12

14

16

18

20

22

24

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Increase tobacco tariff in cities and states

No-smoking working place

Implementation of Nicotine sticker program

3 years mean value3 year mean value

3 year mean value

Media Propaganda Campaigns

Effect of Intervention Measures for Tobacco ControlEffect of Intervention Measures for Tobacco ControlAdult Smoking Rate in New York,Adult Smoking Rate in New York, 1993-20071993-2007

Reduced 300,000 smoking population , and prevented about 100, 000 people from early death

Adult P

ercentum

Comparison of tobacco tariff rate among different countries

0

10

2030

40

5060

7080

中国 南非 越南 菲律宾 法国 印度 英国 泰国

Increasing tobacco tariff rate, raising tobacco price, and curbing prevalence of tobacco

Source: Tobacco Control Report by WHO in 2008Source: Tobacco Control Report by WHO in 2008Source: Tobacco Control Report by WHO in 2008Source: Tobacco Control Report by WHO in 2008

Cigarettes Prices in Different Countries (Unit: US dollars)

5. 715. 15

8. 68

7. 04

3. 25

4. 91

1. 922. 63

0123456789

法国 南非 英国 印度 泰国 菲律宾 中国 越南

Source: Tobacco Control Report by WHO in 2008Source: Tobacco Control Report by WHO in 2008Source: Tobacco Control Report by WHO in 2008Source: Tobacco Control Report by WHO in 2008

Comparison of Every Hundred Boxes of Cigarettes Proportion in Disposable

Income

24 3

20

4

9

3

9

0

5

10

15

20

法国 南非 英国 印度 泰国 菲律宾 中国 越南

百盒占可支配收入

Source: Tobacco Control Report by WHO in 2008Source: Tobacco Control Report by WHO in 2008Source: Tobacco Control Report by WHO in 2008Source: Tobacco Control Report by WHO in 2008

Increasing Affordability of Cigarettes in China

20092009年年WHOWHO控烟报告控烟报告20092009年年WHOWHO控烟报告控烟报告

Before May 31Before May 31stst, 2009, 2009 After May 31st, 2009After May 31st, 2009Specific tax per pack Specific tax per pack (RMB, Yuan)(RMB, Yuan)

0.060.06 0.060.06

Ad valorem taxAd valorem tax ≧≧5 Yuan, 45%5 Yuan, 45% ≧≧7 Yuan, 56%7 Yuan, 56%

<5 Yuan, 30%<5 Yuan, 30% <7 Yuan, 36%<7 Yuan, 36%

Whole sale price per packWhole sale price per pack 0%0% 5%5%

Tariff Rate of Tobacco Products Adjusted in 2009

It’s a pity that there was no change in retail price

Monitoring Changes of Retail Price of Tobacco in Seven Cities of China by ITC Program

Smoking behavior

Relevant information

Attitude

Tobacco price

No-smoking progress in public

places

Tobacco advertisement

Tobacco cessation services

tobacco price: 3 retailers, 5600 smokers

Retail Price of Tobacco Products（ not-adjusted CPI）

0

5

10

15

20

25

30

都宝

红塔山

红梅

中南海

中南海

白沙

芙蓉王

芙蓉

白沙

椰树

双喜

椰树

双喜

红双喜

上海

红双喜

牡丹

牡丹

红梅

黄果树长征

猴王

北京 长沙 广州 上海 沈阳 银川

2007 9年 月2009 5- 8年 月2010 7年 月

Mean Price of Tobacco Products

6. 26 6. 4 6. 28

0

1

2

3

4

5

6

7

2007 9年 月 2009 5- 8年 月 2010 7年 月

平均

Prices of Cigarettes Used by Smokers

0

5

10

15

20

25

都宝

红梅

红塔山

上海

红双喜

红双喜

双喜

双喜

椰树

白沙

白沙

芙蓉王

黄果树长征

长白山

七匹狼

白沙

猴王

利群

北京 上海 广州 长沙 沈阳 银川

第二轮第三轮2010 7年 月

Price Changes of Cigarettes Used by Smokers in Six Cities during 2006-2010

7. 8 7. 79 7. 83

012345678

2006 2008 2010

Unit: RMB Yuan

Changes of Retail Price of Some Cigarettes

（调整为 2007年人民币元）

2007年10-12月

2010年6-7月

Changes of Purchasing Price Reported by Smokers- Top 3 Brands of Cigarettes in Each City

（调整为 2007年人民币元）

Conclusion

Price of Cigarettes does not change nominally,

however, it does decrease sharply in deed.