Table 1

Cigarette retail prices in China by tier, 2009

GradeTierRetail price
Producer profit (%)Retail profit (%)Smoker-years (N)Smoker-years (%)
1[29.76, ∞)51.515590.7
21[18.95, 29.76)40.8151501.8
3[8.97, 18.95)33.31595511.3
42[5.15, 8.97)33.310234527.7
53[2.65, 5.15)2510383045.3
64[0, 2.65)17.610111413.2
  • Note: Retail price ranges are calculated according to the formula (Gao et al5): Retail Price=Allocation Price×(1+Producer π)×(1+Retail π)×(1+VAT), where π denotes profit and VAT is the value-added tax. The ranges for profits come from Gao, Zheng and Hu (2011). For retail price ranges, a bracket denotes a closed interval and a parenthesis denotes an open interval. Tiers 4–6 are combined for analysis due to small cell sizes. Cell counts and proportions are survey weighted. The unweighted sample size is 8552 person-years from 3477 smokers.