Cigarette smoking has been on the decline in the United States, but on the other hand, the demand for non-cigarette tobacco products has been on the increase. On account of protests made by activists against smoking, smokers have become more aware of the health hazards of smoking.
On account of cigarette smoking being injurious to health, smokers go in for non-tobacco products. But these products are also sold at a price as taxes are levied on them Let us observe how taxes influence the sales of these non-cigarette tobacco products:
How taxes affect the sale of cigarettes?
In case, there is an increase in sales tax on cigarettes then there is a fall in the demand for it. Smokers are preferring non-tobacco cigarette products on account of increase of sales tax levies on cigarettes. Researchers belonging to Harvard School of Public Health, which has been led by Professor Greg Connolly, who is the director of the Tobacco Control Research Program at HSPH as well as Hillel Alpert, research associate working for the project made a comparison of all tobacco products in the U.S. They observed that there was a decline in the sales of cigarettes by 30% on account of perhaps an increase in sale of small cigars, “roll-your-own products” and snuff.
It is also possible that the overall decline in tobacco usage could be illusory. This comparative research of tobacco sales during the last decade has appeared in the Journal of the American Medical Association. (JAMA). This happens to be the first of its kind as a concurrent study of sales of cigarettes as well as other tobacco products recently.
Cigar consumption increased by 28% between 2000 and 2004 in the US. Cigarette usage during the same time decreased by 10%. In fact most of states in the US levy less tax on cigars as compared to cigarettes.
Why do smokers switch to non-cigarette tobacco products?
- Price is one reason why smokers are switching over to non-cigarette tobacco products. The federal tax on other tobacco products is 1/10th of that levied on cigarette products. In fact, this has been a major cause of lower levels of cigarette use.
- There has been heavy campaigning against the use of cigarettes but not against the use of other tobacco products.
- Also the death rate caused due to cigarette smoking has been on the rise. Based on the statistics provided by the National Cancer Institute, deaths caused due to illnesses on account of smoking have been on the rise in the US
- Cigar consumption increased by 28% between 2000 and 2004 in the US Cigarette usage during the same time decreased by 10%. In fact, most of states in the US levy less tax on cigars as compared to cigarettes.
- Lower state, as well as federal taxes, have encouraged people to switch over to other tobacco products apart from cigarettes.
- Smoking per se is also on the decline in the US. For example, there has been a decline by 18% from 21.1% billion packs in 2000 to 17.4 billion packs in 2007.
- Many of the US states have also in due course increased the excise tax on cigarettes.
- Judging by current trend cigarette smoking is on the decline among high school students and in fact many high school girls are smoking cigars. Youth overall has taken to cigars in the US.
- Many university students and youth in general have started smoking bidis, rather than cigarettes.
- Equivalent taxes have been levied on tobacco products so that people do not substitute one products for another.
It is quite evident that taxes levied on non-cigarette tobacco products do have an impact on their sale. They turn out to be cheaper as compared to cigarettes and therefore many prefer to use them.
