An Evaluation of New Zealand Smokers’ Reactions to Increased Taxation

Abstract

Rationale: In 2013 the New Zealand Government initiated a 10% taxation increase on cigarettes, a policy that might be expected to impact upon smoking habits. Efforts to reduce cigarette smoking are important for the health of individual smokers, and public health. Smoking causes a variety of illnesses and premature mortality and hence a reduced cigarette consumption would be expected to result in personal and public health improvements.

Materials and Methods: This study evaluated the effect of taxation on cigarette consumption (cessation and changes in habits) through interviews conducted with smokers. One hundred and fifty one participants were recruited in the Wellington Region. Data were collected relating to the stage of addiction, encompassing questionnaires on the urgency to smoke, the autonomy over smoking, the Glover-Nilsson behaviour dependence, Fagerstrom test for nicotine dependence, the cigarette purchase task and smoking cessation, in addition to an appraisal of an electronic cigarette. Statistical comparisons were made for responses obtained at interview sessions, before and after the taxation increase.

Results: The study completion rate was 64%, and the average age of participants was 25 years for men and 31 years for women. A 16% reduction in cigarette consumption occurred following the increase in taxation in those participants who continued to smoke, with an elasticity of -0.75. Six percent of smokers stopped smoking and those participants in the <30 years age group displayed significantly lower scores to other groups. Electronic cigarettes were rated less favourably than regular cigarettes. Hypothetical future and maximum price expenditure on cigarettes (the breakpoint) showed minor variations following the taxation increase; the average breakpoint price after the increase in taxation was $1.69 per cigarette ($34 per 20 pack).

Conclusion: The current taxation method for tobacco control policy has been shown to be effective in reducing smoking consumption in the Wellington region. Taxation also brought about decreases in hypothetical expenditure on cigarettes.