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Cigarette taxes and prices in Spain: government and industry initiatives

Comité Nacional de Prevención del Tabaquismo, Spain

Correspondence to:
Dr Joan R Villalbí
Agència de Salut Pública de Barcelona, Pl Lesseps 1, 08023 Barcelona, Spain; jrvillal@aspb.es

Keywords: cigarette; taxation; price; prevention; policy

The first 150 words of the full text of this article appear below.

Cigarette taxation has recently been modified in Spain. The process took place over six months, and may be relevant for other countries. In September 2005, as financial provisions for the National Health System were reviewed, a modest rise in tobacco taxes was approved, bringing the ad valorem component from 54% to 54.95% and the specific component from 3.99 to 4.20/1000 cigarettes. At the time, a smoking prevention bill was discussed in Congress, banning publicity and smoking in workplaces (with exemptions for the hospitality sector).¹ Most companies did not translate this rise into final prices.

By mid 2005, Altadis launched Ducados Blond, a low cost brand. At a historical low price of 1.35 and with a huge advertisement campaign, sales expanded quickly. Low cost brands had been entering the market, without comparable marketing support.

Taxes on tobacco rose on 20 January 2006, after the entry into force of the bill. The . . . [Full text of this article]