The devastating economic costs of global tobacco use are well documented. Tobacco exacerbates poverty and reduces economic productivity. In low- and middle-income countries, money spent on tobacco products means less money available for food, education, and health care costs. 
 
Significant increases in the taxation and pricing of tobacco products is the most cost-effective measure to cut tobacco use while increasing government revenues. Young people are particularly responsive to these measures. In low to middle income countries young people are 2-3 times more likely to reduce tobacco consumption than adults after a price increase.
 
Article 6 of the WHO Framework Convention on Tobacco Control calls on governments to implement tax and price policies to contribute to their national health objectives. WHO supports governments to meet these obligations by providing technical guidance on how to raise well targeted and effective taxes on tobacco products.
 
WHO's extensive evidence-base for identifying best practices in tobacco taxation also helps government determine the most effective basket of economic policies. Findings include:
 
Specific excise tax structures tend to increase average retail prices for tobacco the most;
Tax increases should be made regularly to account for inflation and the income effect thereby reducing affordability of tobacco;
Equivalent taxes should be applied to all tobacco products to minimize the incentives for tobacco users to switch; 
Tobacco tax administration should be strengthened to reduce opportunities for tax avoidance and tax evasion. 

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