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Tobacco: health effects, and socio-economic issues Joy de Beyer Tobacco Control Coordinator World Bank Lecture at George Washington University, October 24, 2001

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  • Tobacco: health effects,and socio-economic issuesJoy de BeyerTobacco Control CoordinatorWorld BankLecture at George Washington University, October 24, 2001

  • Diseases caused by tobacco useLung cancerCOPD (emphysema, bronchitis, etc)Stroke (bleeding in the brain)Heart attack and heart diseaseNarrowing and clogging of arteriesCancers of mouth, throat, larynx, esophagusOther cancers bladder, kidneys, pancreasPeptic ulcers (stomach bleeding)Respiratory infections and compromise (cough, wheezing etc)Gum disease and tooth lossLow birth weight and SIDSAsthmaEar infectionsCompromised sexual performanceGreater susceptibility to TB?

  • Why does tobacco kill?Burns at 1000o CCig smoke has > 4,000 chemicals, 43 known carcinogens/harmful substances (tar, cadmium, lead, cyanide, nitrogen oxides, benzo(a)pyrine, carbon monoxide, vinyl chloride, acetaldehyde. )Damages tissues throughout the body, clogs arteries, causes blood clots/bleeding

  • Are some cigarettes better?No such thing as a safe cigarette

    light, low tar cigarettes are deceptive - Manipulation by maker- Compensation by smokers so actual yields not = FTC (machine) yield

  • Adult Per Capita Cigarette Consumption and MajorSmoking-and-Health Events -- United States, 1900-1998

  • Global Trends in tobacco use1.1 billion smokers, 80% in low- and middle income countries (1 in 3 adults)

    1.6 billion by 2025

    85% of all tobacco used is smoked (cigarettes, bidis, kreteks)

  • Smoking is increasing in the developing worldMale adult prevalence, 1995US 28 % (was 61% in 1939)East Asia 61 %Europe, Central Asia57 %Latin America, Caribb40 %South Asia41 % (cigs + bidis)Sub-Saharan Africa29 %

  • Burden of Tobacco Deaths Shifting World: Annual Tobacco deaths (in millions)

    20002030

    Developed 2 ~3Developing ~2 ~7World Total 4 ~10

    1 in 2 long-term smokers killed by their addiction1/2 of deaths in middle age (35-69)

  • Tobacco deaths are on the increase in India

  • Smoking is more common among the less educated Smoking prevalence among men in Chennai, India, by education levels

    Source: Gajalakshmi and others, background paper

  • Nicotine is highly addictiveNicotine --> release of serotonin, dopamine, norepinephrine

    Neuro-adaptation

    Each year, nearly 35 million people make a concerted effort to quit smoking. < 7% stay smoke-free for a year; most start smoking again within days.

  • Helping smokers to quit Cessation TreatmentsCessation support from health professionals is key NRTs double the effectiveness of cessation effortsQuit lines, community support, etc., also work Governments may increase accessibility and affordability of NRTs by:OTC sales, allowing advertising, licensingConducting more studies on cost-effectiveness (especially in low/middle income countries)Considering NRT subsidies for poorest smokers

  • Unless current smokers quit, smoking deaths will rise dramatically over the next 50 yearsSource: Peto and others, 1994; Peto, personal communication.

  • Effective Interventions Information Health warnings on tobacco products Comprehensive bans on ALL advertising and promotion Smoking bans in public places (including work places) Cessation support

  • Comprehensive advertising bans reduce cigarette consumption Consumption trends in countries with such bans v. those with no bans(n=102 countries) Source: Saffer, background paper

    Chart1

    17151635

    14701530

    Comprehensive ban

    No ban

    Year

    Cigarette consumption per capita

    No Ban

    Ban

    Sheet1

    19811991

    Comprehensive ban17151470

    No ban16351530

    Sheet1

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    00

    Comprehensive ban

    No ban

    Year

    Cigarette consumption per capita

    Ban

    No Ban

    Sheet2

    Sheet3

    Sheet4

    Sheet5

    Sheet6

  • Taxation is the most effective measure Higher taxes induce quitting and prevent startingA 10% price increase reduces demand by:4% in high-income countries8% in low or middle-income countriesYoung people and the poor are the most price responsive

  • Price Elasticity EvidenceAs real price decreases, consumption increasesEvidence from South Africa

  • Source: Saloojee 1995

    Cigarette consumption per adult (in packs)

    Real Price

    0.7

    0.8

    0.9

    1

    1.1

    1.2

    1.3

    0.05

    0.06

    0.07

    0.08

    0.09

    Consumption per adult

    Real Price

    Year

    1988

    1986

    1984

    1982

    1980

    1978

    1976

    1974

    1972

    1970

  • Evidence from the UK

  • Real Price and Consumption of Cigarettesin the UK, 1971-96

    Source: Townsend J 1998, Central Statistical Office (UK) (1965-93)

  • Why do policy makers resist tax increases?Will higher tobacco taxes:Reduce revenues ? Tobacco is a good source of revenue. Revenues rise as a result of higher taxesCause job losses ?Farmers, tobacco industry workers, othersIncrease smuggling ?smuggling loses revenues, and is a crimeHurt poor smokers ?

  • Tobacco Taxes generate Revenues

    Chart3

    774.9133179852

    911.1704527958

    1015.0985874645

    1188.1165300264

    1427.348858241

    1540.667089533

    1587.2928663239

    2373.4373883644

    3414.3415651028

    4082.9541913369

    7244.5312449791

    9971.0220535926

    13114.8080593849

    18061.17160575

    Total Cigarette Tax

    (Million US $)

    Cigarette Tax Revenue in EU Countries, 1999

    mainsheet

    HUNGARY19751980198519901991199219931994199519961997199819992000

    Domestic Tobacco Consumption

    Cigarettes (million sticks)28,63926,42425,74027,76928,57927,75021,20020,90023,70023,90020,000

    Per capita cigarette cosumption (sticks) (15+)3,4643,1953,1113,3563,4523,3512,5692,5422,8922,9272,457

    per capita cigarette cosumption (sticks) (all)2,7632,5622,5082,7202,8132,7462,1102,0932,3882,4232,039

    Prevelence (% of adults)33%32%32%32%36%35%35%33%31%31%

    Cigarette consumption per smoker 15+104969984972310486959095747447770294809560

    Tobacco Prices

    Average retail prices

    - Cigarettes (HUF/piece)1.421.852.363.023.684.325.756.5010.7511.0011.25

    y o y change (%)30%28%28%22%18%33%13%65%2%2%

    Taxation on Tobacco

    Stated Tax rates on Tobacco Products

    VAT (as % of TIRSP, tax included retail selling price)20%20%20%20%20%20%20%20%20%20%

    Specific tax for cigarettes (HUF per 100 cigarettes)607792110121139160195230245

    Ad Valerom tax rate50%50%50%50%65%75%75%75%75%75%

    Tariff on imported cigarettes

    Actual Average Tax Burden on Tobacco products

    - Cigarettes (HUF/piece)

    Actual Tax Rate as % of Retail price for Tobacco Products

    - Cigarettes60.9%61.0%57.1%52.4%56.5%58.6%59.7%54.0%57.6%59.2%

    Specific rate/pieceSpecific rate0.770.921.101.211.391.601.932.32.6

    Ad valorem RSP/pieceAd valorem RSP0.400.510.620.730.981.111.831.91.9

    VATVAT0.470.600.740.861.151.302.152.22.3

    total tax/piecetotal tax/piece0.001.642.042.462.813.524.015.916.376.81

    Excise tob. revenueExcise tob. revenue030,947.7937,876.1645,574.7951,378.8362,558.8271,476.9299,288.18110,188.08120,427.38

    total tob revenuetotal tob revenue043,42053,42365,98576,07194,47199,037144,223162,328174,202

    % tob excise in excise reve% tob excise in excise reve0.0000.1860.2560.2770.2560.2820.2680.3100.0000.000

    % tob reven. In total revenue% tob reven. In total revenue0.000.040.040.040.040.040.040.040.000.00

    % tax in RSPVATrevenue0.000.700.670.670.650.610.620.550.580.61

    % of excise in RSPspecific reve0.000.500.470.470.450.410.420.350.380.41

    ad valorem revad valorem rev0.00

    Total Tax revenues on Tobacco Products (Actual)

    - Cigarettes (million HUF)29,77737,04947,87255,00667,67671,38081,094137,568151,321133,234

    - VAT (million HUF)9,77712,14916,77221,00623,97624,38027,17050,95552,58045,000

    - Excise tax (million HUF)14,30020,00024,90031,10034,00043,70047,00053,92486,61398,74188,234

    as % of retail price35.2%40.9%41.0%37.1%32.4%36.5%38.6%39.7%34.0%37.6%39.2%

    fixed19,82025,54731,43733,57829,46833,40946,21554,97048,900

    ad valerom5,0805,5532,56310,12317,53220,51540,39843,77139,334

    8.4%6.6%2.4%8.4%14.4%15.1%15.9%16.6%17.5%

    cigarette tax composition - VAT33%33%35%38%35%34%34%37%35%34%

    cigarette tax composition - excise67%67%65%62%65%66%66%63%65%66%

    total100%100%100%100%100%100%100%100%100%100%

    Total Tobacco Tax revenue (direct calculation)

    - Cigarettes (million HUF) (VAT + excise tax)31,36439,07853,11767,44977,91376,58285,219149,913157,761135,195

    - VAT (applied to domestic production minus exports)9,77712,14916,77221,00623,97624,38027,17050,95552,58045,000

    - Excise tax ( fixed + Ad valorem)21,58726,92936,34446,44453,93752,20258,04998,958105,18190,195

    - fixed part15,85419,82025,54731,43733,57829,46833,40946,21554,97048,900

    - Ad valorem5,7327,10910,79715,00720,36022,73424,64052,74350,21141,295

    discrepancy with line 407.9%8.1%16.9%36.6%23.4%11.1%7.6%14.3%6.5%2.2%

    tax per domestic production1.201.461.882.282.702.713.325.595.745.88

    tax per domestic consumption1.191.521.912.362.813.614.086.336.606.76

    Total cigarette excise tax (million US$)288341395442428341310462444354

    cigarette trade suplus as % of cigarette excise tax-1.8%1.4%0.8%1.8%8.0%13.9%12.1%5.2%6.1%6.0%

    Tobacco Trade

    Cigarettes Trade

    Cigarette imports (million sticks)427300237209390250300400300400500

    Cigarette exports (million sticks)001,3326391,3671,4007,4005,2003,4004,0003,500

    Average price of imports (HUF/piece)2.00.90.90.92.24.72.93.4343.8794.255

    Average price of exports (HUF/piece)n.a.0.40.70.93.51.21.61.8062.0002.151

    Average price of imports (US$/piece)0.0270.0110.0090.0090.0170.0310.0160.0160.0160.017

    2%2%2%

    Average price of exports (US$/piece)n.a.0.0060.0080.0080.0270.0080.0080.0080.0080.008

    Total import value (million HUF)3012853188496072141803525441,4131,1771,0301,5512,128

    Total export value (million HUF)4413719082165854611,1664,8458,6838,2076,1418,0017,530

    Net surplus (million HUF)-257-272-24759-3913712828154,3017,2707,0305,1116,4495,403

    Total import value (million US$) -cigarette796138323496578

    Total export value (million US$)1011437511385744293430

    Net surplus (million US$)-6-8-51-5538344838242721

    Other Tobacco Products Trade

    Leaf tobacco imports (metric tons)

    Leaf tobacco exports (metric tons)

    Average price of import (HUF/ton)

    Average price of export (HUF/ton)

    All Tobacco Products Trade

    Total tobacco import value (million HUF)8598028131,7382,7803,6124,0416,3096,43510,90714,384

    Total tobacco export value (million HUF)1312602151,1087942,4612,1643,6246,29813,5328,478

    Net surplus (million HUF)-728-542-599-630-1,986-1,151-1,878-2,685-1372,625-5,906

    Total tobacco imports (Million US$)2024162837464460517177

    Total tobacco exports (Million US$)3841811312435508845

    Total Trading surplus in tobacco (Million US$)-17-16-12-10-26-15-20-26-117-32

    Domestic Tobacco Production

    Cigarettes (million sticks)28,21226,12426,83528,19929,55628,90028,30025,70026,80027,50023,000

    - filter (million sticks)26,20027,55627,10026,50023,90025,10026,20021,800

    - non-filter (million sticks)1,9992,0001,8001,8001,8001,7001,3001,200

    Macro Data (Population, Trade, Tax, Income, CPI)

    Population (million)10.710.510.410.310.310.210.210.110.010.09.99.99.8

    -growth rate-1.500%-1.720%-0.500%-0.500%-0.500%-0.500%-0.524%-0.600%-0.600%-0.600%-0.600%-0.554%

    Adult population (15+) (million)8.368.328.278.278.278.288.288.288.258.228.198.178.14

    - growth rate-0.500%-0.592%0.030%0.030%0.030%0.030%0.037%-0.350%-0.350%-0.350%-0.350%-0.302%

    Total merchandise import (Million US$)7,1759,2358,1908,62611,46511,06612,68314,63215,49118,14421,23423,101

    Total merchandise export (Million US$)6,0948,7008,4799,55610,24210,7058,94510,74512,97615,70419,10020,747

    Total merchandise trade suplus (Million US$)-1,081-534289930-1,223-361-3,738-3,887-2,515-2,440-2,134-2,354

    Total government excise tax revenue (million HUF)25,200108,200137,300166,700148,200164,300200,900222,100266,300320,600

    Total government tax revenue (million HUF)456,200934,100988,6001,143,2001,390,4001,642,3001,999,0002,328,8002,780,2003,221,800

    Total government revenue (million HUF)

    exchange rate (HUF/US$) (period average)44335063757992105126153187214237255

    Average monthly labor income (HUF)27,98634,19641,49450,81656,65462,97775,68391,868104,028116,725

    Average monthly labor income (US$)373433451484450412405429439458

    CPI ( in 1995 HUF)32445465.677.9100123.5146.1167.1184.3196

    Some Tobacco Ratios

    Percentage of cigarettes excise tax of total excise tax13.2%14.6%14.9%21.0%20.7%21.8%21.2%20.2%27.0%

    Percentage of cigarettes tax of total tax3.17%3.42%3.82%4.11%3.90%3.29%3.07%4.65%

    Percentage of cigarette expenditure in total labor income1.76%1.79%2.04%2.08%2.13%1.95%1.82%2.82%2.58%1.97%

    A smoker's % of cigarette expenditure in total labor income5.5%5.6%6.4%5.8%6.1%5.7%5.5%9.2%8.4%0.0%

    World Bank User:vat rate is 25%

    World Bank User:40 without filter and 65 with filter

    World Bank User:I guess this is as a % of exfactory price or wholesale price, not as % of retail price

    World Bank User:cigarettes VAT as % of total Cigarettes tax (VAT + Excise)

    World Bank User:Cigarettes Excise Tax as % of Total Cigarettes tax ( VAT + Excise)

    World Bank User:These numbers are estimated, need more information on this

    World Bank User:Estimated

    World Bank User:Estimated

    World Bank User:These numbers should be what we got directly from other sources

    World Bank User:These numbers are what we calculated using tax rates, prices and consumption data

    World Bank User:This should be in line with what we have in line 38. Otherwise there will be some problem

    World Bank User:For the sake of international comparison

    World Bank User:These are what we computed, need to verify with other sources

    World Bank User:EU standard is above 70%, Hungary hasn't reached that level

    World Bank User:Need real data, these are estimates

    mainsheet

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    Percentage of cigarette expenditure in total labor income

    Cigarette Expenditure as % of Average Montly Labor Income: Hungary (1991-2000)

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    Share of Cigarette Expenditure in Average Monthly Labor Income in Hungary, 1991-1999

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    Smoker's Monthly Cigarette Expenditure in Average Monthly Labor Income in Hungary, 1991-1999

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    1991199219931994199519961997199819992000

    Total Cigarette Production (million sticks)26,12426,83528,19929,55628,90028,30025,70026,80027,50023,000

    Domestic total consumption (million Sticks)26,42425,74027,76928,57927,75021,20020,90023,70023,90020,000

    Per Capita Cigarette Consumption (15+)3,1953,1113,3563,4523,3512,5692,5422,8922,9272,457

    Per Capita Cigarette Expenditure (15+) (HUF, monthly)59173410131269144814771652310932202764

    Per Capita Monthly Labor Income27,98634,19641,49450,81656,65462,97775,68391,868104,028116,725

    % of Cigarettes Expenditure on Labor Income2%2%2%2%3%2%2%3%3%2%

    1960196119621963196419651966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996199719981999

    Hungary15,78216,79316,44915,81216,39318,47820,52520,93621,83620,77222,50224,00826,13523,60323,59325,78326,25025,70025,52526,05028,59828,19026,43524,85027,54027,28027,13327,24226,62827,41528,84926,53025,89527,76928,57927,75027200209002370023900

    population 15+7456100.07.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+06

    per capita consumption sticks2117225222062121219924782753280829292786301832203505316631643458352134473423349438363781354533333694365936393654357136773869355834733724383337223648280331793205

    % change

    1960-196517.1%

    1965-197021.8%

    1970-197514.6%

    1980-198510.9%

    1985-1990-4.6%

    1990-19955.8%

    1995-1999-13.9%

    196019651970197519801985199019951999

    per stick211724783018345838363659386937223205

    % increase17%22%15%11%-5%6%-4%-14%

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    Per Capita Cigarette Consumption (15+)

    % of Cigarettes Expenditure on Labor Income

    Sticks

    Annual Cigarettes Consumption Per 15+ & Cigarettes Expendiures as % of Income

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    Domestic total consumption (million Sticks)

    Million Sticks

    Domestic total consumption in Hungary

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    Total Cigarette Production (million sticks)

    Domestic total consumption (million Sticks)

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    Total Cigarettes Production & Consumption in Hungary

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    Sticks/15+ population

    Trend in Cigarette Consumption and Change in Every Five Years (%) Hungary 1960-1999

    3205(-14%)

    3722(-4%)

    3869(6%)

    3659(-5%)

    3836(11%)

    3458(15%)

    3018(22%)

    2478(17%)

    Sheet1

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    % change

    Percentage Change in Cigarette Consumption in Every Five Years in Hungary 1960-1999

    Sheet2

    19871988198919901991199219931994199519961997199819992000

    Retail Price (HUF/Pack)15.317.519.328.43747.260.473.586.4115130160195225

    CPI19222532445465.677.9100123.5146.1167.1184.3196

    Real Cigarette Retail Price (1995 HUF / Pack)828177888588929486938996106115

    Domestic Consumption (million sticks)27,24226,62827,41528,84926,53025,89527,76928,57927,75027,20020,90023,70023,90020,000

    Domestic Consumption (million sticks)25,05623,40524,01321,92121,36521,40020,90023,70023,900

    Annual Average Consumption Per 15+ Adult164160165174160157168173168165127145146123

    Annual Average Consumption Per 15+ Adult151141145132129130127145146

    population 15+8.328.328.328.278.278.278.288.288.288.258.228.198.178.14

    Average monthly income27,98634,19641,49450,81656,65462,97775,68391,868104,028116,725

    Real Per Capita Monthly Income64257.990019009663859.966617053763252.818560784165232.179986804156653.785774664950993.792781824751802.066758665554977.940479919356445.016106373659553.682669481

    Disposable Income (billion HUF)1727.62050.82350.92888.63559.443835219.66140.96967.9

    Real Disposable Income/capita 15+479.6167958042462.9339679684433.0509964312447.9488294541429.8273155416430.0752251587434.4598178734448.4777294011463.0038232849

    % of cigarette price (per pack) on monthly income0.13%0.14%0.15%0.14%0.15%0.18%0.17%0.17%0.19%0.19%

    % of cigarette price (per pack) on monthly income1.8%1.8%2.0%2.1%2.1%2.5%1.8%2.1%2.3%2.0%

    1987198819891990199119921993199419951996199719981999

    Annual Average Consumption Per 15+ Adult164160165174160157168173168165127145146

    Real Cigarette Retail Price (1995 HUF / Pack)828177888588929486938996106

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    Annual Average Consumption Per 15+ Adult

    Real Per Capita Monthly Income

    packs

    1995 HUF

    Real Income and Per Capital Consumption

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    Real Cigarette Retail Price

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    Real Cigarette Retail Price (1995 HUF / Pack)

    Annual Average Consumption Per 15+ Adult

    Real Per Capita Monthly Income

    Real Retail Price/pack (HUF), and Cigarette per pack/15+

    Real Per Capita Monthly Income

    Real Cigarette Price, Real Monthly Income and Cigarette Consumption, Hungary, 1991-2000

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    Annual Average Consumption Per 15+ Adult

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    Real per capita monthly income

    Consumption and Real Income Trend Hungary 1991-2000

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    Real Cigarette Retail Price (1995 HUF / Pack)

    Annual Average Consumption Per 15+ Adult

    Real Price/pack (HUF)

    Consumption per pack/capita 15+

    Cigarette Consumption Trend and Real Average Retail Price of Most Popular Brand Hungary, 1991-1999

    Restrictions & Prevalence

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    Real Cigarette Retail Price (1995 HUF / Pack)

    1995 HUF/pack

    Real Cigarette Retail Price in Hungary, 1987-2000

    1975198019851990199119921993199419951996199719981999

    Cigarette Imports79613832349657

    Cigarette Exports (Mil. US$)10114375113857442934

    Cigarette Trade Surplus-6-8-51-55383448382427

    Total Tobacco Imports ( Million US$)2024162837464460517177

    Total Tobacco Exports ( Mil. US$)3841811312435508845

    Total Tobacco Trade Surplus (million US$)-17-16-12-10-26-15-20-26-117-32

    Total Merchandise Imports (Million US$)7,1759,2358,1908,62611,46511,06612,68314,63215,49118,14421,23423,1010

    Total Merchandise Exports (Million US$)6,0948,7008,4799,55610,24210,7058,94510,74512,97615,70419,10020,7470

    Total Merchandise Trade Surplus (Million US$)-1,081-534289930-1,223-361-3,738-3,887-2,515-2,440-2,134-2,3540

    Tobacco suplus as % of total merchandise1.53%3.07%-4.14%-1.08%2.16%4.04%0.55%0.66%0.04%-0.70%1.48%

    Tobacco exports as % of total merchandise0.05%0.09%0.05%0.18%0.10%0.29%0.26%0.32%0.39%0.56%0.24%

    Tobacco imports as % of total merchandise0.27%0.26%0.20%0.32%0.32%0.41%0.35%0.41%0.33%0.39%0.36%

    Cigarette exports as % of total merchandise0.02%0.00%0.02%0.15%0.03%0.07%0.06%0.10%0.30%0.36%0.23%0.14%

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    Cigarette Exports (Mil. US$)

    Total Tobacco Exports ( Mil. US$)

    Tobacco exports as % of total merchandise

    Tobacco Export and Its Share in Total Merchandise Export, Hungary, 1975-1997

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    Total Tobacco Trade Surplus (million US$)

    Net Surplus of Tabacco Trade (Million US$)

    A Net Importer of Tobacco

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    Cigarette Imports

    Cigarette Exports (Mil. US$)

    Cigarette Trade Surplus

    Million US$

    Million US$

    Exports of Cigarettes Picked up in Late 90s

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    Tobacco Trade Suplus (Deficits)

    % of Tobacco surplus on total merchandise

    Total Tobacco Trade Surplus (million US$)

    Tobacco suplus as % of total merchandise

    Million US$

    Tobacco Trade as % of Total Merchandise

    000

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    000

    000

    Total Tobacco Imports ( Million US$)

    Total Tobacco Exports ( Mil. US$)

    Total Tobacco Trade Surplus (million US$)

    Million US$

    Tobacco Trade (Export-Import) Hungary, 1975-1997

    Notes1991199219931994199519961997199819992000Cigarettes tax2000BulgariaCrotiaCzechRep.EstoniaHungaryLatviaLithuaniaMoldovaPolandRomaniaRussiaSloveniaUkraine

    Excise Tax on Cigarettes (Million HUF)20,00024,90031,10034,00043,70047,00053,92486,61398,74188,234VAT45,000Total Tax Incidence54.967.460.255.460.549.3397.660.55421.262.631

    VAT on Cigarettes (Million HUF)9,77712,14916,77221,00623,97624,38027,17050,95552,58045,000Fixed Excise48,900Excise incidence36.549.542.140.140.53423.87.642.5384.53215

    Total Cigarettes Tax29,77737,04947,87255,00667,67671,38081,094137,568151,321133,234Ad Valorem Excise39,334

    Total Excise Tax (Million HUF)137,300166,700148,200164,300200,900222,100266,300320,60000Total Tax IncidenceExcise incidence

    Total Government Tax Revenue (Million HUF)988,6001,143,2001,390,4001,642,3001,999,0002,328,8002,780,2003,221,80000Moldova7.67.6

    Cigarettes excise tax as % of total excise15%15%21%21%22%21%20%27%Russia21.24.5

    CIgarettes tax as % of total government tax revenue3%3%3%3%3%3%3%4%Ukraine3115

    In 1995 HUFReal Cigarettes Tax Revenue68,36969,18972,97670,61067,67657,79855,50682,32782,10667,977Lithuania3923.8

    CPI44546678100124146167184196Latvia49.334

    consumption26,53025,89527,76928,57927,75021,20020,90023,70019,360Romania5438

    Tax per pack22293438496778116156Bulgaria54.936.5

    real tobacco tax revenue683696918972976706106767657798555068232782106Estonia55.440.1

    real tax per pack525353494955536985CzechRep.60.242.1

    Hungary60.540.5

    HUNGARY199219931994199519961997199819992000FPoland60.542.5

    Specific rate/piece0.770.921.101.211.391.601.932.32.6Slovenia62.632

    Ad valorem RSP/piece0.400.510.620.730.981.111.831.91.9Crotia67.449.5

    VAT0.470.600.740.861.151.302.152.22.3

    total tax/piece

    Excise tob. revenue30,94837,87645,57551,37962,55971,47799,288110,188120,427

    total tob revenue43,42053,42365,98576,07194,47199,037144,223162,328174,202

    % tob excise in excise reve0.1860.2560.2770.2560.2820.2680.310

    % tob reven. In total revenue0.040.040.040.040.040.040.04

    % tax in RSP0.700.670.670.650.610.620.550.580.61

    % of excise in RSP0.500.470.470.450.410.420.350.380.41

    Real excise tax revenue57,79457,73858,50451,37950,65548,92359,41859,78761,443

    Real total tax revenue81,08681,43884,70576,07176,49567,78786,31088,07888,879

    consumptionreal tobacco tax revenuereal tax per pack

    19917959068369.297178150851.5411211294

    19927768569188.914618659953.438049522

    19938330772976.335365853752.5595702876

    19948573770610.481386392849.4142421963

    1995832506767648.7754954955

    19966360057797.570850202454.526010236

    19976270055505.745752709653.1155461748

    19987110082326.93414636369.4742060307

    19995808082105.793227550684.820034326

    Belarus953%

    Bulgaria2969%

    Croatia4335%

    Cyprus683%

    Czech10656%

    Estonia604%

    Hungary5213%

    Kazakhstan1129%

    Latvia473%

    Lithuania301%

    Poland31187%

    Romania112310%

    Russia18155%

    Slovenia1632%

    Turkey441011%

    Ukraine110111%

    199219931994199519961997199819992000

    Real total tax revenue81085.972958840781437.685365853784704.761232349276071.081676494.99595141767787.077344284786309.503291442288078.176885512788878.7653061225

    Real Tax Per Pack3.773.803.753.613.523.244.043.813.69

    Real Cigarette Retail Price (1995 HUF / Pack)92.073170731794.35173299186.493.117408906988.980150581895.7510472771105.8057514921114.7959183673

    SpainSwedenUnited KingdomHungary

    475093720004521

    199939.8018.89858.3369.811

    AustriaBelgium-LuxembourgDenmarkFinlandFranceGermanyGreeceIrelandItalyNetherlandsPortugal11910534353

    Total Cigarette Tax (Mn US$)2135132215157438704132712035107374922827129933%20%29%36%

    Population (mn)8.29210.6875.2745.17959.06182.68810.5973.57457.19415.8719.78833.8167.20147.3338.141

    Per Capita Cigarette Tax (US$)25712428714414716019230013117813311.31.413.52.9

    Smoking Incidence25%29%31%24%33%37%37%32%25%34%19%4216601483180

    15+ pop (mn)6.8778.834.294.22948.22969.9938.9762.81949.08112.9858.149

    Number of smokers (mn)1.72.51.31.015.925.63.30.912.14.31.5

    Per Smoker Cigarette Tax (US$)126752511397485475186131208617650855

    Per Capita Cigarette Tax (US$)

    Hungary53.1

    Sweden105.3

    Spain119.3

    Italy131.0

    Portugal132.8

    Finland143.5

    France147.4

    Germany160.5

    Netherlands178.1

    Greece192.1

    Austria257.5

    Denmark287.3

    Ireland300.2

    UK342.9

    Per Smoker Cigarette Tax (US$)

    Hungary180

    Spain421

    Germany518

    France547

    Greece613

    Italy617

    Netherlands650

    Sweden660

    Finland748

    Portugal855

    Denmark1139

    Ireland1208

    Austria1267

    UK1483

    Per Smoker Cigarette Tax (US$)Cigarette Price Per pack

    Hungary1800.8961%

    Spain4211.2573%

    Germany5182.7669%

    France5473.1676%

    Greece6132.1773%

    Italy6172.0975%

    Netherlands6503.1572%

    Sweden6604.0971%

    Finland7483.8476%

    Portugal8551.8180%

    Denmark11394.3781%

    Ireland12084.1377%

    Austria12672.4974%

    UK14835.7379%

    Per Smoker Cigarette Tax (US$)Cigarette Price Per 100 packs

    Hungary1808961%

    Spain42112573%

    Germany51827669%

    France54731676%

    Greece61321773%

    Italy61720975%

    Netherlands65031572%

    Sweden66040971%

    Finland74838476%

    Portugal85518180%

    Denmark113943781%

    Ireland120841377%

    Austria126724974%

    UK148357379%

    IrelandAustriaUK

    1208.27988929991267.16222367961482.8637136436

    413.4438248.6999773909573.3364

    HungarySpainGermanyFranceGreeceItalyNetherlandsSwedenFinlandPortugalDenmark

    Per Smoker Cigarette Tax (US$)180.3493705137420.5169770466518.0465587542546.8792258147612.8617168305616.7327553154649.7784143587660.1957426951747.8252189794855.01213984711139.4030002256

    Cigarette Price Per 100 pack89124.6494234964275.7158006363316.1805390878216.8920643021208.8711318673315.279280975408.6176878161383.7030835775181.0376040966437.2007683266

    Total Cigarette TaxCigarette Tax as % of Total Government TaxTotal Cigarette Tax

    Lithuania301%Lithuania30

    Latvia473%Latvia47

    Estonia604%Estonia60

    Cyprus683%Cyprus68

    Belarus953%Belarus95

    Kazakhstan1129%Kazakhstan112

    Slovenia1632%Slovenia163

    Bulgaria2969%Bulgaria296

    Croatia4335%Croatia433

    Hungary5213%Hungary521

    Czech10656%Czech1065

    Ukraine110111%Ukraine1101

    Romania112310%Romania1123

    Russia18155%Russia1815

    Poland31187%Poland3118

    Turkey441011%Turkey4410

    Total Cigarette TaxCigarette Tax as % of Total Government TaxTotal Cigarette Tax

    Finland7752%Finland775

    Sweden9111%Sweden911

    Ireland10155%Ireland1015

    Portugal11884%Portugal1188

    Austria14272%Austria1427

    Denmark15413%Denmark1541

    Belgium15872%Belgium1587

    Greece23739%Greece2373

    Netherlands34142%Netherlands3414

    Spain40833%Spain4083

    Italy72452%Italy7245

    France99712%France9971

    Germany131152%Germany13115

    UK180614%UK18061

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    Excise Tax on Cigarettes (Million HUF)

    Cigarettes excise tax as % of total excise

    Million HUF

    Cigarette Excise Tax Revenue and its Share in Total Excise Revenue in Hungary, 1991-1998

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    Tax as % of Retail Price

    Real Cigarettes Tax Revenue

    59%

    Million HUF ( in 1995 Value)

    Real Cigarettes Tax Revenues in Hungary(1995 CPI = 100)

    56%

    53%

    60%

    57%

    59%

    52%

    57%

    61%

    61%

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    Cigarettes excise tax as % of total excise

    CIgarettes tax as % of total government tax revenue

    The Importance of Cigarettes Taxation is Rising

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    Cigarettes Tax Revenue Composition In Hungary ( 2000F)

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    VAT

    Excise Tax

    Excise Tax on Cigarettes (Million HUF)

    VAT on Cigarettes (Million HUF)

    Million HUF

    Cigarettes Tax Revenues in Hungary 1991-2000

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    % tax in RSP

    % of excise in RSP

    % of total and excise tax share in RSP

    Total (Excise+VAT) and Excise (Specific+Ad Valorem) Tax Incidence on Cigarettes Hungary, 1992-2000

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    Excise tob. revenue

    % tob excise in excise reve

    Million HUF

    Cigarette Excise Tax Revenue and Its Share in Total Excise Revene, Hungary, 1992-1998

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    Excise tob. revenue

    Real excise tax revenue

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    Real and Nominal Tobacco Tax Revenue, Hungary, 1992-2000

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    Total Tax Incidence

    Excise incidence

    % of total and excise tax rates

    Tobacco Tax Rates in Central European Countries, 2000

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    Per Capita Cigarette Tax (US$)

    US$

    Per Capita Cigarette Tax for Hungary and Selected EU Countries, 1999

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    Per Smoker Cigarette Tax (US$)

    US$

    Per Smoker Cigarette Tax for Hungary and Selected EU Countries, 1999

    2.0452780985

    2.074542809

    3.0631160255

    9.8111836606

    21.0126799816

    25.6362952231

    Consumption Per 15+

    Kg / Week

    Additional Food a Smoker Can Buy Per Week if He/She Did Not Smoke in Hungary, 1999

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    Per Smoker Cigarette Tax (US$)

    Cigarette Price Per pack

    US$

    US$

    Per Smoker Cigarette Tax and Cigarette Price Per Pack in 1999

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    Taxes as % of Retail Prices

    Per Smoker Cigarette Tax (US$)

    Cigarette Price Per 100 packs

    US$

    Tob. Tax Revenue/Smoker, Retail Price, and Tax as % of Price in 1999

    79%

    74%

    77%

    81%

    80%

    76%

    71%

    72%

    61%

    73%

    69%

    76%

    73%

    75%

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    Cigarette Retail Price Per 100 Packs

    Per Smoker Cigarette Tax (US$)

    Cigarette Price Per 100 packs

    US$

    Tob. Tax Revenue/Smoker, Retail Price, and Tax as % of Price in 1999

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    Per Smoker Cigarette Tax (US$)

    Cigarette Price Per 100 packs

    US$

    Tob. Tax Revenue/Smoker, Retail Price, and Tax as % of Price in 1999

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    real tobacco tax revenue

    real tax per pack

    Total Real Tobacco Tax Revenue (Million 1995 HUF)

    Real Tax Per Pack (1995 HUF)

    Real Tobacco Tax Revenue and Real Tax per Pack in Hungary, 1991-1999

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    3 Times Consumption (Left-hand side, million Pieces)

    Real Tax Per Pack (1995 HUF)

    Real Tobacco Tax Revenue(Left-hand side, million 1995 HUF)

    consumption

    real tobacco tax revenue

    real tax per pack

    Real Tobacco Tax Revenue, Real Tax Per Pack and Consumption Trends in Hungary, 1991-1999

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    Real Tax Per Pack (1995 HUF)

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    real tobacco tax revenue

    real tax per pack

    Real Tobacco Tax Revenue, Real Tax Per Pack and Consumption Trends in Hungary, 1991-1999

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    real tobacco tax revenue

    Real Tobacco Tax Revenue, Real Tax Per Pack and Consumption Trends in Hungary, 1991-1999

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    Total Cigarette Tax

    Total Cigarette Tax (US$ Million)

    Cigarette Tax Revenue and its share in Government Tax Revenue in ECA Countries, 1999

    11%

    7%

    5%

    10%

    11%

    6%

    3%

    5%

    9%

    2%

    9%

    3%

    3%

    4%

    3%

    1%

    0

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    0

    0

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    0

    Total Cigarette Tax

    Total Cigarette Tax (US$ Million)

    Total Cigarette Tax and Percentage Share in Total Government Tax Revenue for EU Countries, 1999

    4%

    2%

    2%

    2%

    3%

    2%

    9%

    2%

    3%

    2%

    4%

    5%

    1%

    2%

    World Cigarette Consumption

    30-NOV-1999 11:02

    (Million Pieces)

    19961997199819992000 by Gain reportRetail price of 20 local currency

    Domestic Consumption

    Afghanistan1500150015001500Tax incidence %Per capita consumption 15+Million consumption15+ populationMost popular brand price per pack in EURO and % of total tax in priceMost popular brand price per pack in EURO and % of total tax in price

    Albania3050320032503250Lithuania39.135.51088777225300298525.90.518

    Algeria20700210002150021500Estonia55.437.16216216222200118443.70.874

    Angola2900290029002900Latvia49.340.12036108324000199424.20.484

    Argentina41300412004170042500Romania5443.713458281400001830115.270.3054

    Armenia; Republic of5600570058005800Czeck Rep.60.244.320037322119000857451.91.038

    Australia28584279992787427100Slovenia62.644.44444444443700166553.761.0752

    Austria12936132051550315600Croatia67.451.23213804269501370959.11.182

    Azerbaijan; Republic of6100620061506150Bulgaria54.955.104408352719000689615.70.314

    Bangladesh15400154001540015400Hungary60.557.445018627623900832144.130.8826

    Barbados230230230235Poland60.559.5829195631930003121740.780.8156

    Belarus15000155001600016000

    Belgium-Luxembourg15572122161230012300

    Belize18018018080

    Benin500500500500

    Bolivia1300130013001300

    Bosnia-Hercegovina9600960096008600

    Botswana900900900900

    Brazil11900011030097000100000

    Brunei800800800800

    Bulgaria19103186001800019000

    Burma1550155015501550

    Burundi700700700700

    Cambodia4300430043004300

    Cameroon5250525052505250

    Canada48562469944879648796

    Chad55555555

    Chile12675139901414012545

    China; Peoples Republic of1659477166604816550901655950

    Colombia19800198001980019800

    Congo (Brazzaville)10701070600600

    Costa Rica2025202520252025

    Cote d''Ivoire485048504850485045 (35 most popular)

    Croatia10491889695019501

    Cuba15900159001590015900

    Cyprus1450150015501550

    Czech Republic2270023950200001900019000

    Denmark9472907485098700

    Dominican Republic4098388440894089

    Ecuador4600460046004600

    Egypt44250462004660046600

    El Salvador1620162016201620

    Estonia2200220022002200

    Ethiopia2700270027002700

    Fiji700700700700

    Finland5059522352385300

    France86163829838383683000

    Georgia; Republic of8600870088008800

    Germany127003137643137500137000

    Ghana2250225022502250

    Greece30000299003000030150

    Guatemala2144217021752175

    Guinea1051058585

    Guyana650650650650

    Haiti920920920920

    Honduras2011201120112011

    Hong Kong5076502755405900

    Hungary21200209002370023900

    Iceland600600600600

    India100786976809682095975

    Indonesia192688202379205459207685

    Iran24000241002420024200

    Iraq13700142001420014200

    Ireland6350635063506350

    Israel8200825083508350

    Italy86960932079353692900

    Jamaica & Dep1240124012401240

    Japan336545319615257600257600

    Jordan3850395040004000

    Kazakhstan; Republic of15650160001700017000

    Kenya7000700070007000

    Korea; Democratic Peoples Rep15500155001550015500

    Korea; Republic of103001102756102000102000

    Kuwait1000100010001000

    Kyrgyzstan; Republic of4000405041004100

    Laos1300130013001300

    Latvia3900400040004000

    Lebanon5600565056505650

    Liberia225225225225

    Libya5700570057005700

    Lithuania5200525053005300

    Macau8800880088008800

    Macedonia (Skopje)4600460047004700

    Madagascar2500250025002500

    Malawi12001100950930

    Malaysia19933202291930018500

    Malta & Gozo1350137514001400

    Mauritius1500150015001500

    Mexico46758469904718047230

    Moldova; Republic of4800480047004700

    Morocco15700158001590015900

    Mozambique1200120012001200

    Nepal1500150015001500

    Netherlands15425166703012430124

    Netherlands Antilles1700170017001700

    New Zealand6245624562256225

    Nicaragua2400240024002400

    Niger800800800800

    Nigeria18700187001870018700

    Norway2720277125752715

    Pakistan45603469655170254500

    Panama900915915915

    Papua New Guinea55555555

    Paraguay1900195019501950

    Peru4210421042104210

    Philippines77779692017500071620

    Poland91780916639305093000

    Portugal16150164751647516475

    Reunion300300300300

    Romania32500315003300040000

    Russian Federation207000230000231500232000

    Rwanda30303030

    Saudi Arabia20000200002000020000

    Senegal3900390039003900

    Seychelles15151515

    Sierra Leone1038103810381038

    Singapore3389346733223480

    Slovakia11250119001240012400

    Slovenia3700370037003700

    Solomon Islands25252525

    South Africa; Republic of36024325883108230000

    Spain74582808758992090000

    Sri Lanka5150515051505150

    Sudan1250135014501450

    Surinam400400400400

    Sweden8278599957006300

    Switzerland15452145091435014350

    Syria10000101001020010200

    Taiwan37632400124010440080

    Tajikistan; Republic of7400750074007400

    Tanzania; United Republic of3750375037503750

    Thailand49155491344170034290

    Togo1000100010001000

    Trinidad and Tobago1320132013201320

    Tunisia11100111001120011200

    Turkey98509100030109300111500

    Turkmenistan5900600061006100

    Uganda2300230023002300

    Ukraine85000860008700087000

    United Arab Emirates6500650065006500

    United Kingdom89288880208294079500

    United States518305507004483000446000

    Uruguay3938393839383938

    Uzbekistan; Republic of17782179881598416600

    Venezuela7658699141004100

    Vietnam32000320003200032000

    Western Samoa155155160160

    Yemen4700480048004800

    Yugoslavia (>05/92)22300223002230022300

    Zaire5300530053005300

    Zambia1600160016001600

    Zimbabwe2150218320902090

    5178827Share of tobacco Consumption

    Africa's Share2181034.2%

    Sub-Sharan Africa's share770031.5%22.3%

    Kenya's share in African expenditure9.1%

    0.2239185751

    Rest of the world85.5%

    Europe EU share61369911.9%0.99999

    Germany's share1370002.6%0.000010.99999

    Rest of the world86.9%0.1052631579Rest of the world87%

    Central Europe67780113.1%European Union0.023923445Central Europe0%

    Hungary239000.0%GermanyHung in central europe4%

    Hung in central europe4%0.0046149447Baltics2%

    Baltics115001.7%1975FemalesBalkans21%

    Balkans13775120.3%198597Former USSR27%

    Former USSR17965026.5%199020Poland14%

    Poland9300013.7%1995Russia35%

    Russia23200034.2%

    0.7713191001

    0.000001

    0.1741725744

    0.0545083255

    0.7616402353

    0.2383597647

    0.8711771990.871177199

    0.1288228010.128822801

    0.00000010.0000001

    Rest of the World 87%

    Central and East Europe 13%

    Hungary 4% of C&EE

    Rest of the World 87%

    Central and East Europe 13%

    Hungary 4% of C&EE

    Global Share of Cigarette Consumption 1999

    0.77131910010.7713191001

    0.0000010.000001

    0.17417257440.1741725744

    0.05450832550.0545083255

    Other causes 77%

    Smoking deaths 23%

    Male deaths 76%

    Female deaths 24%

    Other causes 77%

    Smoking deaths 23%

    Male deaths 76%

    Female deaths 24%

    Tobacco Attributable Deaths in Hungary 1995

    0.13

    0.18

    0.2

    0.23

    All causes

    Share of Smoking Attributed Deaths in Total Deaths in Hungary, 1975-1995

    00

    00

    00

    00

    00

    00

    00

    00

    00

    00

    Per capita consumption 15+

    Most popular brand price per pack in EURO and % of total tax in price

    Pack of 20/capita 15+

    Cigarette Consumption in 1999, % of Tax Incidence and Most Popular Brand Price (EURO) in Eastern Europe Countries, 2000

    39%0.52

    55.4%0.87

    49%0.48

    54%0.31

    60%1.0

    63%1.1

    67%1.2

    55%0.31

    61%0.88

    61%0.82

    0

    0

    0

    0

    0

    0

    Distribution of the Cigarette Consumption in Central and Eastern European Countries in 1999

    Former USSR 27%

    Poland 14%

    Russia34%

    Balkans20%

    Baltics2%

    Hungary4%

    ProductionImports (M)Exports (X)

    UNSDUSDACISERCUNSDFAOUSDAERCUNSDFAOUSDAERCPopTotal ConsumptionConsumption Per Person 15+

    YearMil. UnitsMTMT15+USDA

    196116,793---0---07.50816793112

    1962---16,449---20---2207.56716449109

    1963---15,812---50---107.63815812104

    1964---16,393---70---7207.71316393106

    1965---18,478---160---66107.79218478119

    1966---20,525---960---43907.87220525130

    1967---20,936---640---18807.95720936132

    1968---21,836---3050---65308.0421836136

    1969---20,772---6400---34308.117207721283

    19702205022,000---627783---2252818.18622502137197067506

    19712345223,452---8611,075---4155198.24624008146197172024

    19722547525,475---8261,033---2983738.29926135157197278405

    19732284322,843---8331,041---2252818.33923603142197370809

    19742292222,923---8041,005---2683358.3723593141197470779

    19752454924,500---12231,528---1962458.3925783154197577349

    19762489624,900---12461,600---22508.39826250156197678750

    19772486524,900---14271,000------2008.39625700153197777100

    19782515224,725---9451,000---12008.38625525152197876575

    19792497224,972---10631,328---22508.37326050156197978150

    19802715827,158---13521,690---1002508.3628598171198085794

    19812710227,102---10701,338---9352508.34728190169198184570

    19822613526,135---8401,300---1661,0008.33726435159198279305

    19832567625,250---1077900---3441,3008.32824850149198374550

    19842667926,678---762953---73918.31527540166198482620

    19852643026,430---8521,000---2421508.30627280164198581840

    19862635126,283---4921,000---291508.29227133164198681399

    19872654126,542---270800---271008.27927242165198781726

    19882617126,328---354450---581508.26926628161198879884

    19892654026,540---8201,025---4001508.26427415166198982245

    19902821228,21228212---534427427---376315028038.26828489172199085467

    19912612426,100261240491600600---6521701708.28226530160199179590

    19922683526,835268352372651010133213319509508.30625895156199277685

    19932872828,1992872831631620920980683363947008.33127769167199383307

    19942951829,55629518634629390390178617861,36773008.35628579171199485737

    19952570928,90025709711707250250---50861,40029008.3727750166199583250

    19962759428,30027080866866300866737473747,40070008.37121200127199663600

    19972605725,70027100548548400548626462645,20062648.36620900125199762700

    1998---26,800325325300------3,4008.35423700142199871100

    1999---22,960-22%------400------4,0008.34119360116199958080

    2000------------------------8.329

    00

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    00

    00

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    Total Consumption

    Consumption Per Person 15+

    Total Consumption (Million Pieces)

    Consumption Per Person 15+ (packs)

    Cigarette Consumption in Hungary, 1970-1999

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    Million Pieces

    Cigarette Production in Hungary, 1961-1999

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

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    0

    3

    sa

    1999 ConsumptionSmoking among studentsFactors influencing health conditionSmoking Initiation

    Rest of the World4333560Never smokedBoys28Average importance 1less important to 5 most important% said it infuences health to a large extentBoysGirls

    Rest of the World0Girls34Daily stress4.4865500

    Hungary19360tried not smokerBoys33alcohol4.3460635

    Rest of ECA8259072.3%Girls35Environ.4.3458750

    quitBoys10smoking4.3598193

    Girls8private life4.154891818

    6 cig./wkBoys21dwelling place3.73271490110

    Girls15housing3.68231560751

    long working hours3.52221620302

    characteristics of job3.5161710103

    innate abilitites3.44201804

    frequency of screening tests3.38165

    illness in the family3.25166

    chance2.6377

    qualification2.3958

    9

    10

    11

    12

    Adult (18 years & older), 1998-1999Youth (11-15 year olds), 199713

    Males44%9%14

    Females27%6%15

    35-69 years olds

    MaleFemale

    Vascular44%16%

    Respiratory75%43%19841985

    Lung Cancer97%75%19832.02E+042.10E+04

    2.05E+0419841985

    19833.56E+031.38E+03

    3.69E+035.25E+034.76E+03

    7.40E+03

    19841985

    19832024320966

    2053935621381

    1980368852484755

    1.48E+0473952192924340

    198024246

    2.54E+03

    6.76E+03

    1980

    Tobacco leaves - Production (mt)19611962196319641965196619671969197019711972197319741975197614798198619871988198919901991199219931994199519961997199819992000

    Hungary1.72E+041.86E+042.67E+042.86E+041.84E+041.96E+042.39E+042.74E+041.76E+041.63E+041.74E+041.96E+041.68E+041.67E+041.94E+0419771978197925382.13E+041.97E+041.60E+041.47E+041.36E+041.75E+041.31E+041.11E+041.20E+041.12E+041.03E+041.09E+041.25E+041.40E+041.40E+04

    Hungary1961196219631964196519661967196919701971197219731974197519762.42E+042.17E+042.52E+046763198119821986198719881989199019911992199319941995199619971998

    Tobacco Leaves - Exports (Mt)6.44E+033.96E+034.01E+039.68E+039.50E+037.20E+031.07E+047.33E+038.57E+035.69E+032.60E+031.51E+031.33E+031.13E+036.33E+02197719781979190232.28E+042.47E+042.88E+033.45E+033.41E+031.17E+048.75E+025.92E+027.10E+021.54E+037.53E+029.16E+022.67E+032.94E+022.26E+03

    Tobacco Leaves - Imports (Mt)7.51E+036.55E+034.56E+034.99E+034.93E+038.07E+031.56E+041.03E+047.57E+037.68E+039.00E+038.67E+039.06E+038.27E+036.74E+038.21E+021.10E+031.15E+03198119826.02E+037.74E+035.82E+035.42E+036.21E+031.85E+048.86E+031.19E+041.61E+041.30E+041.94E+041.93E+041.81E+04

    Hungary Leaf19688.58E+036.26E+034.31E+032.71E+032.44E+03

    19611962196319641965196619672.68E+04196919701971197219731974197519768.26E+037.06E+031986198719881989199019911992199319941995199619971998

    Production171731862326704286031844319611239091968274061759416287173711963316774167451938119771978197921266197481604914653135831750913103111361202911249103431093912538

    Export643939554006968495037200107026.55E+0373278569569325961511133111316332416421691252331981198228753453340811733875592710154075391626652942261

    Import751165464555499149258067155761.23E+0410313757276769000866890558271673882111031151228132469660247744581754166212185228859118541613913031194321931518060

    Domestic Consumption182452121427253239101386520478287833039216597182702377526790244982388525486857962554308271224402441524039184588336189203543921252214502741523364271102996028337

    196831922268432839082597057

    268002836029313

    6552

    12263

    32511

    19841985

    19831.92E+041.63E+04

    2.53E+047.64E+034.29E+03

    1.22E+04

    84

    12-19-16

    -25-12-12

    -13

    1980

    2.43E+04

    7.88E+03

    8

    -24

    -16

    Hungary1961196219631964196519661967196919701971197219731974197519761986198719881989199019911992199319941995199619971998

    Tobacco - Imports (1000$)3.95E+039.69E+038.28E+031.11E+041.06E+041.00E+041.45E+041.24E+041.09E+041.07E+041.18E+041.33E+041.67E+041.95E+041.82E+041977197819791.93E+042.30E+042.43E+042.54E+042.76E+043.71E+044.57E+044.39E+046.01E+045.11E+047.13E+047.69E+047.43E+04

    Tobacco - Exports (1000$)4.00E+033.84E+033.07E+038.11E+038.46E+037.89E+031.08E+047.97E+037.57E+036.33E+033.80E+033.37E+033.36E+032.98E+031.20E+032.32E+041.70E+041.65E+04198119826.74E+036.88E+038.97E+037.35E+031.76E+041.06E+043.12E+042.35E+043.45E+045.00E+048.84E+044.53E+043.10E+04

    1.81E+032.60E+033.29E+032.84E+042.49E+04

    Export44388811886433311.32E+047.89E+037797181131243550884531

    Import-4-10-8-11-11-10-141968-12-11-11-12-13-17-20-18233-19-23-24-25-28-37-46-44-60-51-71-77-74

    Net Surplus0-6-5-3-2-2-41.14E+04-4-3-4-8-10-13-17-17-23-17-16138-13-16-15-18-10-26-15-20-26-117-32-43

    8.59E+03-21-14-13-28-25

    -15-17

    9

    -11

    -3

    198719881989199019911992199319951996199719981999

    Real Cigarette Retail Price (1995 HUF / Pack)82.355474216881.353726000776.718209643487.532747726984.953964135788.145215507692.073170731786.493.117408906988.980150581895.7510472771105.8057514921

    Consumption Per Person 15+ (packs)164.5247010509161.0110049583165.8700387222172.2847121432160.1666264187155.8812906333166.6606649862165.770609319126.6276430534124.9103514224141.8482164233116.0532310275

    1994

    94.351732991

    171.0088559119

    Retail Price (US$/pack)Tax as % of Retail Price

    Hungary0.8961%

    Spain1.2573%

    Portugal1.8180%

    Italy2.0975%

    Germany2.7669%

    France3.1676%

    Finland3.8476%

    Sweden4.0971%

    Ireland4.1377%

    Denmark4.3781%

    UK5.7379%

    0.71

    0.16

    0

    0

    0

    0

    Hungary's Cigarette Consumption Share in ECA and ECA's Share in the World, 1999

    Hungary2%

    ECA16%

    Rest of ECA98%

    00

    00

    Males

    Females

    Smoking Prevalence in Hungary

    00

    00

    00

    Male

    Female

    Percentage of Deaths Attributed to Smoking for People Aged Between 35 and 69 in Hungary, 1990

    0000

    0000

    0000

    0000

    0000

    0000

    0000

    0000

    0000

    0000

    0000

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    0000

    0000

    0000

    0000

    0000

    0000

    0000

    0000

    0000

    0000

    0000

    0000

    0000

    0000

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    0000

    0000

    0000

    0000

    0000

    Production

    Export

    Import

    Domestic Consumption

    Metric tons

    Tobacco Leaf Production, Export, Import and Domestic Production in Hungary, 1961-1998

    000

    000

    000

    000

    000

    000

    000

    000

    000

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    000

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    000

    000

    000

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    000

    000

    000

    000

    000

    000

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    &A

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    Export

    Import

    Net Surplus

    Million US Dollars

    Tobacco Trade in Hungary, 1961-1998

    82.3554742168164.5247010509

    81.3537260007161.0110049583

    76.7182096434165.8700387222

    87.5327477269172.2847121432

    84.9539641357160.1666264187

    88.1452155076155.8812906333

    92.0731707317166.6606649862

    94.351732991171.0088559119

    86.4165.770609319

    93.1174089069126.6276430534

    88.9801505818124.9103514224

    95.7510472771141.8482164233

    105.8057514921116.0532310275

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    Price

    Consumption

    Real Cigarette Retail Price (1995 HUF / Pack)

    Consumption Per Person 15+ (packs)

    Real Cigarette Price (1995 HUF/pack)

    Consumption Per Person 15+ (Packs)

    Real Cigarette Price and Cigarette Consumption Per Person 15+ in Hungary, 1987-1999

    0.89

    1.246494235

    1.810376041

    2.0887113187

    2.7571580064

    3.1618053909

    3.8370308358

    4.0861768782

    4.134438

    4.3720076833

    5.733364

    Tax as % of Retail Price

    Retail Price (US$/pack)

    Cigarette Price US$/Pack

    Cigarette Prices and Taxes for Hungary and Selected EU Countries, 1999

    79%

    81%

    77%

    71%

    76%

    76%

    69%

    75%

    80%

    73%

    61%

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    0

    Smoking among students

    Smoking among Primary and Secondary School Students in Hungary 1995-1996

    00

    00

    00

    00

    00

    00

    00

    00

    00

    00

    00

    Average importance 1less important to 5 most important

    % said it infuences health to a large extent

    % said important

    Factors influencing health conditions

    4.48

    4.34

    4.34

    4.3

    4.15

    3.99

    3.81

    3.78

    3.77

    3.73

    3.68

    00

    00

    00

    00

    00

    00

    00

    00

    00

    00

    00

    00

    00

    00

    Boys

    Girls

    Age

    Number of Youth

    The First Cigarette among Youth in Hungary, 1996

    Deaths from respiratory diseaseTotal population (mn)Cig consumption 15+

    196089339.961

    1961568710.007112

    1962762010.052109

    1963488010.074104

    1964432310.108106

    1965556810.14119

    1966435410.166130

    1967512610.203132

    1968714710.244136

    1969589010.284128

    1970584310.322137

    1971622710.352146

    1972418410.378157

    1973515810.41142

    1974500610.442141

    1975717410.501154

    1976649710.563156

    1977724710.615153

    1978804810.66152

    1979724210.687156

    19801003110.709171

    1981833410.705169

    1982782510.695159

    1983875810.671149

    1984763710.64166

    1985756510.599164

    1986769810.56164

    1987633510.509165

    1988601310.464161

    1989691610.421166

    1990664410.375172

    1991625210.355160

    1992695110.337156

    1993707710.31167

    1994687410.277171

    1995644710.246166

    1996620010.212127

    1997585010.174125

    1998528910.135142

    1999620810.092116

    200010.043

    Price change

    19901999IncreaseSpendingConsumption Per 15+Consumption Per 15+

    Pork242638164%2870.292.69Pork2.0

    Wine60.5195222%2870.960.82Beef2.1

    Chicken128426233%2870.441.80Chicken3.1

    Flour15.250.9235%2873.660.21Apple9.8

    Beef179629251%2870.302.65Potato21.0

    Potato14.162.1340%2873.000.26Flour25.6

    Apple23.7133461%2871.400.56

    Cigarettes28.4198597%2871160.89500

    797

    Labor cost (HUF/person)

    Food products and beverages manufacturing71725

    Average Manufacturing76101

    Tobacco products Manufacturing1517571.9941525079

    wageworker

    Food products and beverages manufacturing116565

    Tobacco products Manufacturing236105

    average118636

    Number of Employees

    197519801985199019951999

    Tobacco manufacturing5908543053124705245620180.4289054198

    Total manufacturing742899

    Population 15+8341000

    Consumption257832859827280284892775019360

    0

    0

    0

    0

    0

    0

    0

    0

    Increase

    Change in Retail Prices in Selected Foods, Beverages and Tobacco Items in Hungary, 1990-1999

    0

    0

    0

    Labor cost (HUF/person)

    HUF/person

    Average Monthly Gross Earnings Industry in Hungary, 1999

    0

    0

    0

    0

    0

    0

    Consumption Per 15+

    Kg/Week

    Additional Food a Smoker Can Buy Per Week if He/She Did Not Smoke in 1999

    0

    0

    0

    0

    0

    0

    Tobacco manufacturing

    Number of Employees

    Number of Employees in the Tobacco Manufacturing Industry in Hungary, 1975-1999

    00

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    Tobacco manufacturing

    Consumption

    Number of People Employed in Tobacco Manufacturing

    Consumption (Million Pieces)

    Tobacco Manufacturing Employment and Cigarette Consumption in Hungary

    1999

    MalesFemales14 and Less15-3435-6465 and over

    Malignat neoplasm of lip, oral cavity and pharynx1361257211201414

    Malignat neoplasm of trachea, bronchus and lung5797208601637574110

    Smoking prevalence (%)4427

    Total122224124030899268

    Malignat neoplasm of lip, oral cavity and pharynx0.2%0.0%3.0%0.4%

    Malignat neoplasm of trachea, bronchus and lung0.0%0.7%9.3%4.1%

    0.2%0.7%12.3%4.6%

    0.5%6.8%

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    Mortality from Smoking Related Diseases by Gender in Hungary, 1999

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    Percentage Share of Mortality due to Smoking Related Diseases in Total Mortality by Age Groups in Hungary, 1999

    Health professionals prevalence

    Health professionals prevalence

    Albania 90-91M39

    F9

    Bosnia Her.M55

    F50

    Czeck Rep.98M26

    F21

    Hungary 95Surgical41

    non-surgical26

    Latvia 93M59

    F26

    Poland 95M24

    F16

    Moldova 98M44

    F6

    Romania 98M40

    F19

    Russia 96-99M41

    F13

    Slovania 91M32

    F29

    Turkey 93M53

    F41

    % of total deaths attributed to smoking

    Men 35-69Women 35-69

    1955203

    1965265

    1975285

    19853811

    19954518

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    Smoking Prevalence among Health Professionals in Selected ECA countries in 1990s

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    Women 35-69

    % of total deaths attributed to smoking

    Tobacco deaths in Hungary 1955-1995

    45%

    38%

    28%

    26%

    20%

    18%

    11%

    5%

    5%

    3%

    Smoking prevalenceTobacco AdvertisingSales to minorsHealth warnings on PackageSmoking in publicHealth EducationMortality from tobacco Use

    Total (15+)MenWomen

    Bulgaria37.550.125.4

    Croatia

    Czeck Rep.30.14021.2

    Estonia355020

    Hungary485839

    Latvia

    Lithuania

    Poland476828.2

    Romania456832

    Slovenia317030

    Slovak Rep.39.752.127.2

    Total (15+)MenWomenPrevalencePoland smoking prevalence by education

    Bulgaria37.550.125.4Bulgaria, High School42Basic Education53.8

    Czeck Rep.30.14021.2Poland (16-26 years)38.5High School48.7

    Estonia355020Lithuania (14yrs boys)28Middle School44.4

    Hungary485839Czeck (all students)5

    Poland476828.2

    Romania455118

    Slovenia317030

    Slovak Rep.39.752.127.2

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    Total (15+)

    Men

    Women

    % of smokers

    Smoking Prevalence Among Adults (15+) in Selected Eastern Europe Countries, in 1990s

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    % of smokers

    Smoking Prevalence by Education in Poland, 1990s

  • Tobacco Taxes- Important source of revenue!

    Chart1

    0.011598694

    0.0213275886

    0.0257321279

    0.0279536379

    0.0300426378

    0.0320466745

    0.0411181945

    0.0516528473

    0.0530973728

    0.0608066064

    0.0693833653

    0.0851743169

    0.0889857708

    0.1049895709

    0.1087725041

    0.1121230708

    Cigarette Tax as % of Total Government Tax

    Cigarette Tax Revenue as % of Total Government Tax Revenues in Selected ECA Countries, 1999

    9%

    mainsheet

    HUNGARY19751980198519901991199219931994199519961997199819992000

    Domestic Tobacco Consumption

    Cigarettes (million sticks)28,63926,42425,74027,76928,57927,75021,20020,90023,70023,90020,000

    Per capita cigarette cosumption (sticks) (15+)3,4643,1953,1113,3563,4523,3512,5692,5422,8922,9272,457

    per capita cigarette cosumption (sticks) (all)2,7632,5622,5082,7202,8132,7462,1102,0932,3882,4232,039

    Prevelence (% of adults)33%32%32%32%36%35%35%33%31%31%

    Cigarette consumption per smoker 15+104969984972310486959095747447770294809560

    Tobacco Prices

    Average retail prices

    - Cigarettes (HUF/piece)1.421.852.363.023.684.325.756.5010.7511.0011.25

    y o y change (%)30%28%28%22%18%33%13%65%2%2%

    Taxation on Tobacco

    Stated Tax rates on Tobacco Products

    VAT (as % of TIRSP, tax included retail selling price)20%20%20%20%20%20%20%20%20%20%

    Specific tax for cigarettes (HUF per 100 cigarettes)607792110121139160195230245

    Ad Valerom tax rate50%50%50%50%65%75%75%75%75%75%

    Tariff on imported cigarettes

    Actual Average Tax Burden on Tobacco products

    - Cigarettes (HUF/piece)

    Actual Tax Rate as % of Retail price for Tobacco Products

    - Cigarettes60.9%61.0%57.1%52.4%56.5%58.6%59.7%54.0%57.6%59.2%

    Specific rate/pieceSpecific rate0.770.921.101.211.391.601.932.32.6

    Ad valorem RSP/pieceAd valorem RSP0.400.510.620.730.981.111.831.91.9

    VATVAT0.470.600.740.861.151.302.152.22.3

    total tax/piecetotal tax/piece0.001.642.042.462.813.524.015.916.376.81

    Excise tob. revenueExcise tob. revenue030,947.7937,876.1645,574.7951,378.8362,558.8271,476.9299,288.18110,188.08120,427.38

    total tob revenuetotal tob revenue043,42053,42365,98576,07194,47199,037144,223162,328174,202

    % tob excise in excise reve% tob excise in excise reve0.0000.1860.2560.2770.2560.2820.2680.3100.0000.000

    % tob reven. In total revenue% tob reven. In total revenue0.000.040.040.040.040.040.040.040.000.00

    % tax in RSPVATrevenue0.000.700.670.670.650.610.620.550.580.61

    % of excise in RSPspecific reve0.000.500.470.470.450.410.420.350.380.41

    ad valorem revad valorem rev0.00

    Total Tax revenues on Tobacco Products (Actual)

    - Cigarettes (million HUF)29,77737,04947,87255,00667,67671,38081,094137,568151,321133,234

    - VAT (million HUF)9,77712,14916,77221,00623,97624,38027,17050,95552,58045,000

    - Excise tax (million HUF)14,30020,00024,90031,10034,00043,70047,00053,92486,61398,74188,234

    as % of retail price35.2%40.9%41.0%37.1%32.4%36.5%38.6%39.7%34.0%37.6%39.2%

    fixed19,82025,54731,43733,57829,46833,40946,21554,97048,900

    ad valerom5,0805,5532,56310,12317,53220,51540,39843,77139,334

    8.4%6.6%2.4%8.4%14.4%15.1%15.9%16.6%17.5%

    cigarette tax composition - VAT33%33%35%38%35%34%34%37%35%34%

    cigarette tax composition - excise67%67%65%62%65%66%66%63%65%66%

    total100%100%100%100%100%100%100%100%100%100%

    Total Tobacco Tax revenue (direct calculation)

    - Cigarettes (million HUF) (VAT + excise tax)31,36439,07853,11767,44977,91376,58285,219149,913157,761135,195

    - VAT (applied to domestic production minus exports)9,77712,14916,77221,00623,97624,38027,17050,95552,58045,000

    - Excise tax ( fixed + Ad valorem)21,58726,92936,34446,44453,93752,20258,04998,958105,18190,195

    - fixed part15,85419,82025,54731,43733,57829,46833,40946,21554,97048,900

    - Ad valorem5,7327,10910,79715,00720,36022,73424,64052,74350,21141,295

    discrepancy with line 407.9%8.1%16.9%36.6%23.4%11.1%7.6%14.3%6.5%2.2%

    tax per domestic production1.201.461.882.282.702.713.325.595.745.88

    tax per domestic consumption1.191.521.912.362.813.614.086.336.606.76

    Total cigarette excise tax (million US$)288341395442428341310462444354

    cigarette trade suplus as % of cigarette excise tax-1.8%1.4%0.8%1.8%8.0%13.9%12.1%5.2%6.1%6.0%

    Tobacco Trade

    Cigarettes Trade

    Cigarette imports (million sticks)427300237209390250300400300400500

    Cigarette exports (million sticks)001,3326391,3671,4007,4005,2003,4004,0003,500

    Average price of imports (HUF/piece)2.00.90.90.92.24.72.93.4343.8794.255

    Average price of exports (HUF/piece)n.a.0.40.70.93.51.21.61.8062.0002.151

    Average price of imports (US$/piece)0.0270.0110.0090.0090.0170.0310.0160.0160.0160.017

    2%2%2%

    Average price of exports (US$/piece)n.a.0.0060.0080.0080.0270.0080.0080.0080.0080.008

    Total import value (million HUF)3012853188496072141803525441,4131,1771,0301,5512,128

    Total export value (million HUF)4413719082165854611,1664,8458,6838,2076,1418,0017,530

    Net surplus (million HUF)-257-272-24759-3913712828154,3017,2707,0305,1116,4495,403

    Total import value (million US$) -cigarette796138323496578

    Total export value (million US$)1011437511385744293430

    Net surplus (million US$)-6-8-51-5538344838242721

    Other Tobacco Products Trade

    Leaf tobacco imports (metric tons)

    Leaf tobacco exports (metric tons)

    Average price of import (HUF/ton)

    Average price of export (HUF/ton)

    All Tobacco Products Trade

    Total tobacco import value (million HUF)8598028131,7382,7803,6124,0416,3096,43510,90714,384

    Total tobacco export value (million HUF)1312602151,1087942,4612,1643,6246,29813,5328,478

    Net surplus (million HUF)-728-542-599-630-1,986-1,151-1,878-2,685-1372,625-5,906

    Total tobacco imports (Million US$)2024162837464460517177

    Total tobacco exports (Million US$)3841811312435508845

    Total Trading surplus in tobacco (Million US$)-17-16-12-10-26-15-20-26-117-32

    Domestic Tobacco Production

    Cigarettes (million sticks)28,21226,12426,83528,19929,55628,90028,30025,70026,80027,50023,000

    - filter (million sticks)26,20027,55627,10026,50023,90025,10026,20021,800

    - non-filter (million sticks)1,9992,0001,8001,8001,8001,7001,3001,200

    Macro Data (Population, Trade, Tax, Income, CPI)

    Population (million)10.710.510.410.310.310.210.210.110.010.09.99.99.8

    -growth rate-1.500%-1.720%-0.500%-0.500%-0.500%-0.500%-0.524%-0.600%-0.600%-0.600%-0.600%-0.554%

    Adult population (15+) (million)8.368.328.278.278.278.288.288.288.258.228.198.178.14

    - growth rate-0.500%-0.592%0.030%0.030%0.030%0.030%0.037%-0.350%-0.350%-0.350%-0.350%-0.302%

    Total merchandise import (Million US$)7,1759,2358,1908,62611,46511,06612,68314,63215,49118,14421,23423,101

    Total merchandise export (Million US$)6,0948,7008,4799,55610,24210,7058,94510,74512,97615,70419,10020,747

    Total merchandise trade suplus (Million US$)-1,081-534289930-1,223-361-3,738-3,887-2,515-2,440-2,134-2,354

    Total government excise tax revenue (million HUF)25,200108,200137,300166,700148,200164,300200,900222,100266,300320,600

    Total government tax revenue (million HUF)456,200934,100988,6001,143,2001,390,4001,642,3001,999,0002,328,8002,780,2003,221,800

    Total government revenue (million HUF)

    exchange rate (HUF/US$) (period average)44335063757992105126153187214237255

    Average monthly labor income (HUF)27,98634,19641,49450,81656,65462,97775,68391,868104,028116,725

    Average monthly labor income (US$)373433451484450412405429439458

    CPI ( in 1995 HUF)32445465.677.9100123.5146.1167.1184.3196

    Some Tobacco Ratios

    Percentage of cigarettes excise tax of total excise tax13.2%14.6%14.9%21.0%20.7%21.8%21.2%20.2%27.0%

    Percentage of cigarettes tax of total tax3.17%3.42%3.82%4.11%3.90%3.29%3.07%4.65%

    Percentage of cigarette expenditure in total labor income1.76%1.79%2.04%2.08%2.13%1.95%1.82%2.82%2.58%1.97%

    A smoker's % of cigarette expenditure in total labor income5.5%5.6%6.4%5.8%6.1%5.7%5.5%9.2%8.4%0.0%

    World Bank User:vat rate is 25%

    World Bank User:40 without filter and 65 with filter

    World Bank User:I guess this is as a % of exfactory price or wholesale price, not as % of retail price

    World Bank User:cigarettes VAT as % of total Cigarettes tax (VAT + Excise)

    World Bank User:Cigarettes Excise Tax as % of Total Cigarettes tax ( VAT + Excise)

    World Bank User:These numbers are estimated, need more information on this

    World Bank User:Estimated

    World Bank User:Estimated

    World Bank User:These numbers should be what we got directly from other sources

    World Bank User:These numbers are what we calculated using tax rates, prices and consumption data

    World Bank User:This should be in line with what we have in line 38. Otherwise there will be some problem

    World Bank User:For the sake of international comparison

    World Bank User:These are what we computed, need to verify with other sources

    World Bank User:EU standard is above 70%, Hungary hasn't reached that level

    World Bank User:Need real data, these are estimates

    mainsheet

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    Percentage of cigarette expenditure in total labor income

    Cigarette Expenditure as % of Average Montly Labor Income: Hungary (1991-2000)

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    Share of Cigarette Expenditure in Average Monthly Labor Income in Hungary, 1991-1999

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    Smoker's Monthly Cigarette Expenditure in Average Monthly Labor Income in Hungary, 1991-1999

    working

    1991199219931994199519961997199819992000

    Total Cigarette Production (million sticks)26,12426,83528,19929,55628,90028,30025,70026,80027,50023,000

    Domestic total consumption (million Sticks)26,42425,74027,76928,57927,75021,20020,90023,70023,90020,000

    Per Capita Cigarette Consumption (15+)3,1953,1113,3563,4523,3512,5692,5422,8922,9272,457

    Per Capita Cigarette Expenditure (15+) (HUF, monthly)59173410131269144814771652310932202764

    Per Capita Monthly Labor Income27,98634,19641,49450,81656,65462,97775,68391,868104,028116,725

    % of Cigarettes Expenditure on Labor Income2%2%2%2%3%2%2%3%3%2%

    1960196119621963196419651966196719681969197019711972197319741975197619771978197919801981198219831984198519861987198819891990199119921993199419951996199719981999

    Hungary15,78216,79316,44915,81216,39318,47820,52520,93621,83620,77222,50224,00826,13523,60323,59325,78326,25025,70025,52526,05028,59828,19026,43524,85027,54027,28027,13327,24226,62827,41528,84926,53025,89527,76928,57927,75027200209002370023900

    population 15+7456100.07.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+067.46E+06

    per capita consumption sticks2117225222062121219924782753280829292786301832203505316631643458352134473423349438363781354533333694365936393654357136773869355834733724383337223648280331793205

    % change

    1960-196517.1%

    1965-197021.8%

    1970-197514.6%

    1980-198510.9%

    1985-1990-4.6%

    1990-19955.8%

    1995-1999-13.9%

    196019651970197519801985199019951999

    per stick211724783018345838363659386937223205

    % increase17%22%15%11%-5%6%-4%-14%

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    Per Capita Cigarette Consumption (15+)

    % of Cigarettes Expenditure on Labor Income

    Sticks

    Annual Cigarettes Consumption Per 15+ & Cigarettes Expendiures as % of Income

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    Million Sticks

    Domestic total consumption in Hungary

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    Total Cigarette Production (million sticks)

    Domestic total consumption (million Sticks)

    Million Sticks

    Total Cigarettes Production & Consumption in Hungary

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    Sticks/15+ population

    Trend in Cigarette Consumption and Change in Every Five Years (%) Hungary 1960-1999

    3205(-14%)

    3722(-4%)

    3869(6%)

    3659(-5%)

    3836(11%)

    3458(15%)

    3018(22%)

    2478(17%)

    Sheet1

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    Percentage Change in Cigarette Consumption in Every Five Years in Hungary 1960-1999

    Sheet2

    19871988198919901991199219931994199519961997199819992000

    Retail Price (HUF/Pack)15.317.519.328.43747.260.473.586.4115130160195225

    CPI19222532445465.677.9100123.5146.1167.1184.3196

    Real Cigarette Retail Price (1995 HUF / Pack)828177888588929486938996106115

    Domestic Consumption (million sticks)27,24226,62827,41528,84926,53025,89527,76928,57927,75027,20020,90023,70023,90020,000

    Domestic Consumption (million sticks)25,05623,40524,01321,92121,36521,40020,90023,70023,900

    Annual Average Consumption Per 15+ Adult164160165174160157168173168165127145146123

    Annual Average Consumption Per 15+ Adult151141145132129130127145146

    population 15+8.328.328.328.278.278.278.288.288.288.258.228.198.178.14

    Average monthly income27,98634,19641,49450,81656,65462,97775,68391,868104,028116,725

    Real Per Capita Monthly Income64257.990019009663859.966617053763252.818560784165232.179986804156653.785774664950993.792781824751802.066758665554977.940479919356445.016106373659553.682669481

    Disposable Income (billion HUF)1727.62050.82350.92888.63559.443835219.66140.96967.9

    Real Disposable Income/capita 15+479.6167958042462.9339679684433.0509964312447.9488294541429.8273155416430.0752251587434.4598178734448.4777294011463.0038232849

    % of cigarette price (per pack) on monthly income0.13%0.14%0.15%0.14%0.15%0.18%0.17%0.17%0.19%0.19%

    % of cigarette price (per pack) on monthly income1.8%1.8%2.0%2.1%2.1%2.5%1.8%2.1%2.3%2.0%

    1987198819891990199119921993199419951996199719981999

    Annual Average Consumption Per 15+ Adult164160165174160157168173168165127145146

    Real Cigarette Retail Price (1995 HUF / Pack)828177888588929486938996106

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    Annual Average Consumption Per 15+ Adult

    Real Per Capita Monthly Income

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    1995 HUF

    Real Income and Per Capital Consumption

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    Real Cigarette Retail Price

    Cigarette per pack/15+

    Real Per Capita Monthly Income

    Real Cigarette Retail Price (1995 HUF / Pack)

    Annual Average Consumption Per 15+ Adult

    Real Per Capita Monthly Income

    Real Retail Price/pack (HUF), and Cigarette per pack/15+

    Real Per Capita Monthly Income

    Real Cigarette Price, Real Monthly Income and Cigarette Consumption, Hungary, 1991-2000

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    Annual Average Consumption Per 15+ Adult

    Real Per Capita Monthly Income

    Consumption per pack/15+

    Real per capita monthly income

    Consumption and Real Income Trend Hungary 1991-2000

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    Real Cigarette Retail Price (1995 HUF / Pack)

    Annual Average Consumption Per 15+ Adult

    Real Price/pack (HUF)

    Consumption per pack/capita 15+

    Cigarette Consumption Trend and Real Average Retail Price of Most Popular Brand Hungary, 1991-1999

    Restrictions & Prevalence

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    Real Cigarette Retail Price (1995 HUF / Pack)

    1995 HUF/pack

    Real Cigarette Retail Price in Hungary, 1987-2000

    1975198019851990199119921993199419951996199719981999

    Cigarette Imports79613832349657

    Cigarette Exports (Mil. US$)10114375113857442934

    Cigarette Trade Surplus-6-8-51-55383448382427

    Total Tobacco Imports ( Million US$)2024162837464460517177

    Total Tobacco Exports ( Mil. US$)3841811312435508845

    Total Tobacco Trade Surplus (million US$)-17-16-12-10-26-15-20-26-117-32

    Total Merchandise Imports (Million US$)7,1759,2358,1908,62611,46511,06612,68314,63215,49118,14421,23423,1010

    Total Merchandise Exports (Million US$)6,0948,7008,4799,55610,24210,7058,94510,74512,97615,70419,10020,7470

    Total Merchandise Trade Surplus (Million US$)-1,081-534289930-1,223-361-3,738-3,887-2,515-2,440-2,134-2,3540

    Tobacco suplus as % of total merchandise1.53%3.07%-4.14%-1.08%2.16%4.04%0.55%0.66%0.04%-0.70%1.48%

    Tobacco exports as % of total merchandise0.05%0.09%0.05%0.18%0.10%0.29%0.26%0.32%0.39%0.56%0.24%

    Tobacco imports as % of total merchandise0.27%0.26%0.20%0.32%0.32%0.41%0.35%0.41%0.33%0.39%0.36%

    Cigarette exports as % of total merchandise0.02%0.00%0.02%0.15%0.03%0.07%0.06%0.10%0.30%0.36%0.23%0.14%

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    Cigarette Exports (Mil. US$)

    Total Tobacco Exports ( Mil. US$)

    Tobacco exports as % of total merchandise

    Tobacco Export and Its Share in Total Merchandise Export, Hungary, 1975-1997

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    Total Tobacco Trade Surplus (million US$)

    Net Surplus of Tabacco Trade (Million US$)

    A Net Importer of Tobacco

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    Cigarette Imports

    Cigarette Exports (Mil. US$)

    Cigarette Trade Surplus

    Million US$

    Million US$

    Exports of Cigarettes Picked up in Late 90s

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    Tobacco Trade Suplus (Deficits)

    % of Tobacco surplus on total merchandise

    Total Tobacco Trade Surplus (million US$)

    Tobacco suplus as % of total merchandise

    Million US$

    Tobacco Trade as % of Total Merchandise

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    Total Tobacco Imports ( Million US$)

    Total Tobacco Exports ( Mil. US$)

    Total Tobacco Trade Surplus (million US$)

    Million US$

    Tobacco Trade (Export-Import) Hungary, 1975-1997

    Notes1991199219931994199519961997199819992000Cigarettes tax2000BulgariaCrotiaCzechRep.EstoniaHungaryLatviaLithuaniaMoldovaPolandRomaniaRussiaSloveniaUkraine

    Excise Tax on Cigarettes (Million HUF)20,00024,90031,10034,00043,70047,00053,92486,61398,74188,234VAT45,00054.967.460.255.460.549.3397.660.55421.262.631

    VAT on Cigarettes (Million HUF)9,77712,14916,77221,00623,97624,38027,17050,95552,58045,000Fixed Excise48,90036.549.542.140.140.53423.87.642.5384.53215

    Total Cigarettes Tax29,77737,04947,87255,00667,67671,38081,094137,568151,321133,234Ad Valorem Excise39,334

    Total Excise Tax (Million HUF)137,300166,700148,200164,300200,900222,100266,300320,60000Total Tax IncidenceExcise incidence

    Total Government Tax Revenue (Million HUF)988,6001,143,2001,390,4001,642,3001,999,0002,328,8002,780,2003,221,80000Moldova7.67.6

    Cigarettes excise tax as % of total excise15%15%21%21%22%21%20%27%Russia21.24.5

    CIgarettes tax as % of total government tax revenue3%3%3%3%3%3%3%4%Ukraine3115

    In 1995 HUFReal Cigarettes Tax Revenue68,36969,18972,97670,61067,67657,79855,50682,32782,10667,977Lithuania3923.8

    CPI44546678100124146167184196Latvia49.334

    consumption26,53025,89527,76928,57927,75021,20020,90023,70019,360Romania5438

    Tax per pack22293438496778116156Bulgaria54.936.5

    real tobacco tax revenue683696918972976706106767657798555068232782106Estonia55.440.1

    real tax per pack525353494955536985CzechRep.60.242.1

    Hungary60.540.5

    HUNGARY199219931994199519961997199819992000FPoland60.542.5

    Specific rate/piece0.770.921.101.211.391.601.932.32.6Slovenia62.632

    Ad valorem RSP/piece0.400.510.620.730.981.111.831.91.9Crotia67.449.5

    VAT0.470.600.740.861.151.302.152.22.3

    total tax/piece

    Excise tob. revenue30,94837,87645,57551,37962,55971,47799,288110,188120,427

    total tob revenue43,42053,42365,98576,07194,47199,037144,223162,328174,202

    % tob excise in excise reve0.1860.2560.2770.2560.2820.2680.310

    % tob reven. In total revenue0.040.040.040.040.040.040.04

    % tax in RSP0.700.670.670.650.610.620.550.580.61

    % of excise in RSP0.500.470.470.450.410.420.350.380.41

    Real excise tax revenue57,79457,73858,50451,37950,65548,92359,41859,78761,443

    Real total tax revenue81,08681,43884,70576,07176,49567,78786,31088,07888,879

    consumptionreal tobacco tax revenuereal tax per pack

    19917959068369.297178150851.5411211294

    19927768569188.914618659953.438049522

    19938330772976.335365853752.5595702876

    19948573770610.481386392849.4142421963

    1995832506767648.7754954955

    19966360057797.570850202454.526010236

    19976270055505.745752709653.1155461748

    19987110082326.93414636369.4742060307

    19995808082105.793227550684.820034326

    953%

    2969%

    4335%

    683%

    10656%

    604%

    5213%

    1129%

    473%

    301%

    31187%

    112310%

    18155%

    1632%

    441011%

    110111%

    199219931994199519961997199819992000

    Real total tax revenue81085.972958840781437.685365853784704.761232349276071.081676494.99595141767787.077344284786309.503291442288078.17688551278887