Bloomberg Philanthropies' Director Dr Kelly Henning shares her experience doing tobacco control in New York City

1. 8/2/10
Advancing
the
tobacco
tax
agenda
for
health
promo5on
Kelly
J.
Henning,
MD
Bloomberg
Philanthropies
Health
Promo:on
Funding
and
Tobacco
Tax
Seminar
UP
College
of
Law,
University
of
the
Philippines
Quezon
City,
June
22
2010
1
Tobacco
Is
Now
the
World’s
Leading
Single
Agent
of
Death
Unless urgent action is taken, tobacco will soon kill twice
as many people and will kill 1 billion people this century
2
World Health Organization
1

2. 8/2/10
Raising
Tobacco
Taxes
is
Integral
to
Tobacco
Control
• The
Par:es
recognize
that
“price
and
tax
measures
are
an
effec:ve
and
important
means
of
reducing
tobacco
consump:on.”
Ar:cle
6,
FCTC
• “Increasing
the
price
of
tobacco
through
higher
taxes
is
the
single
most
effec:ve
way
to
decrease
consump:on
and
encourage
tobacco
users
to
quit.”
MPOWER
report
2008
• Tobacco
taxes
raise
revenues
AND
yield
significant
public
health
gains
3
Tobacco
Taxes
in
New
York
City
2

3. 8/2/10
Adult
Smoking
in
NYC
Down
Almost
30%
Since
1993
City and State
3-yr average 3-yr average tax increases
3-yr average
Smoke-free
workplaces
Free patch
programs Media
campaigns
% of adults
Current
NYC
Tobacco
Taxes
• Total
tax
on
a
pack
of
cigare[es
is
almost
$6.00
Excise Taxes Federal $1.01
State $2.75
City $1.50
Sales Taxes City & State $0.71
TOTAL $5.97
• Highest
combined
state/local
tax
in
U.S.
• NYC
and
NY
State
both
specific
taxes
($
per
pack)
• Total
pack
price
is
approximately
$9.20
• Tax
accounts
for
65%
of
NYC
pack
price
(World
Bank
noted
level)
3

4. 8/2/10
Changes
in
CigareLe
Excise
Taxes
NYC
and
NY
State
Total = $5.26
Total = $4.64
Total = $3.39
Total = $1.58
Smoking
Prevalence
Declined
as
NYS/NYC
CigareLe
Taxes
Increased
Adults
1997-­‐2009
Federal tax
increase
NYS tax
increase
NYC and NYS
tax increases
4

5. 8/2/10
Smoking
Prevalence
Declined
as
NYS/NYC
CigareLe
Taxes
Increased
Youth
1997-­‐2009
Federal tax
increase
City and State
tax increases tax
NYS
increase
NYC and NYS
tax increases
Data
to
Advocate
for
Tax
Increases
• Data
is
a
powerful
tool
– Baseline
prevalence,
consump:on,
prices,
brands
– Tax
structure
and
processes
to
increase
taxes
– Tracking
changes
over
:me
• Real
prices
• Reduc:on
in
tobacco
use
and
prevalence
• Lives
saved
• Revenues
increased
5

6. 8/2/10
Tobacco
Tax
Revenues
Tobacco
Excise
Tax
Revenues
NYC:
Smoking
Prevalence
Decreased
while
Revenue
Increased
Nearly
Tenfold
12
6

7. 8/2/10
Total
Tobacco
Tax
Revenue
FY
2001-­‐2009
• NYC
collected
$946,198,0001
– 46%
of
tobacco
tax
revenue
transferred
to
NYS
– Remaining
54%
goes
to
NYC
General
Fund
• NY
State
collected
$9,059,011,2492
– Tobacco
tax
revenue
split
between
NYS
General
Fund
and
health
care
reform
fund
1. The Office of the New York City Comptroller. Comprehensive Annual Financial Report of the Comptroller for the Fiscal Year Ended June 30, 2007. New York: October 31,
2007.
2. New York State Department of Taxation and Finance. Annual Statistical Report of New York State Tax Collections Statistical Summaries and Historical Tables. Available at:
http://www.tax.state.ny.us/statistics/stat_fy_collections.htm
Tobacco
Excise
Tax
Revenues
Mexico Tax Rates and Real Excise Revenues
1981-2008
• Do
not
decline
when
taxes
are
increased
– even
when
accoun:ng
for
reduced
consump:on
Waters et al. The Economics of Tobacco
and Tobacco Taxation in Mexico, 2010
• Taxes
directly
strengthen
tobacco
control
• Revenues
have
a
second
round
of
benefits
if
invested
in
health
priori:es,
including
tobacco
control
and
health
promo:on
14
7

8. 8/2/10
Using
Tobacco
Excise
Tax
Revenues
• Dedicated
tobacco
taxes
to
support
tobacco
control
ac:vi:es
including
“health
promo:on
founda:ons”
and
comprehensive
tobacco
control
programs”
– Thai
Health
Founda:on
• Other
countries
dedicate
part
of
tobacco
tax
or
other
tobacco-­‐
related
revenues
for
tobacco
control
and/or
health
promo:on:
– India,
Nepal,
Peru,
Estonia,
Poland
– Several
US
states
– Poland
(0.5%),
Finland
(0.75%),
Iceland
(0.9%)
of
tobacco
tax
revenues
15
Tobacco
Excise
Tax
Revenues
Thailand
• A
2%
tax
surcharge
earmarked
for
a
broad
agenda,
including
funding
the
Thai
Health
Promo:on
Founda:on
(Thai
Health)
• Autonomous
state
agency
outside
the
formal
structure
of
government.
•
Ac:vi:es
– Tobacco
control
– Alcohol
consump:on
control
– Traffic
injuries,
disaster
preven:on
– Health
risk
factors
16
8

9. 8/2/10
Tobacco
control
is
underfunded
17
Country-­‐level
ques5ons
for
health
promo5on
founda5ons
• Tobacco
taxa:on
– MPOWER:
how
much
progress?
– Tobacco
tax
levels:
rela:ve
to
neighbors,
region,
best
prac:ces
– Tobacco
excise
tax
structures
– Tobacco
excise
tax
revenues
over
:me
– Use
of
tax
revenues
(general
funds?
specific
uses?)
• Health
Promo:on
– What
structures
exist,
and
how
are
they
financed
currently?
• And
how
is
tobacco
control
funded?
– A
key
health
promo:on
ac:vity,
itself
underfunded
18
9

10. 8/2/10
Thank
you
19
10