Industry tactics
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The public health implications of tobacco industry pricing
Governments need to be far more sophisticated in the way that they monitor cigarette prices. Using weighted average prices will help but it is also essential to monitor price trends by price segment.
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New research suggests that government cap cigarette prices and raise an extra £500m per year in doing so
Dr Robert Branston, from the Centre for Governance and Regulation at the University of Bath’s School of Management; and Professor Anna Gilmore, from the University’s Department for Health and the UK Centre for Tobacco Control Studies, say that capping the pre-tax cigarette manufacturers’ prices would safeguard society from the market failure behind manufacturers’ pricing power and associated high profits.
