Colombo, Nov. 2 (Daily Mirror) - Sri Lanka has the most expensive cigarettes in the world when measured against purchasing power parity (PPP), according to the latest World Health Organisation (WHO) data cited in a new Oxford Economics assessment that questions the effectiveness of the WHO’s global tobacco tax incidence benchmark.
The assessment argues that national economic realities, rather than a uniform global target, should guide tobacco taxation policies, highlighting significant differences in economic conditions across countries.
It questions the effectiveness of the WHO’s 75% tobacco tax incidence benchmark, stating that achieving a specific tax incidence rate does not necessarily translate into lower smoking prevalence.
According to the research, there is little meaningful relationship between the proportion of taxes in cigarette retail prices and overall smoking rates. Countries with higher tax incidence rates do not necessarily record lower levels of smoking, the report noted.
The findings raise questions about whether tax incidence alone should be used as an indicator of success in tobacco control and whether a single global benchmark can effectively guide taxation strategies across vastly different economies.
The assessment also highlights concerns previously raised by several international organisations regarding reliance on tax incidence targets to measure tobacco control effectiveness.
Among the publications cited is a WHO document which concluded that the share of taxes in the retail price of cigarettes is not, in itself, an important indicator of tobacco control success.
Furthermore, the publication emphasised that the retail price of cigarettes, rather than the proportion of that price attributable to taxes, plays a more significant role in influencing smokers’ consumption decisions.
This distinction suggests that the impact of tobacco taxation should be assessed by examining its effect on cigarette prices and smoking behaviour, rather than focusing exclusively on whether a country has achieved a predetermined tax share.
The WHO’s own Technical Manual on tobacco taxation also acknowledges that the tax share of retail prices is insufficient, on its own, to guarantee the success of policies aimed at reducing tobacco demand.
Sri Lanka’s position in global cigarette pricing, as highlighted in the assessment, underscores the importance of considering national economic conditions and consumer purchasing power when evaluating tobacco taxation policies.
The Oxford Economics assessment questions whether the WHO’s 75% tax incidence benchmark can serve as a meaningful universal standard for countries with substantially different economic circumstances.
Moreover, it argues that effective tobacco taxation strategies should be evaluated in the context of national realities, including cigarette prices, consumer purchasing power and smoking prevalence.
While taxation remains an important instrument in tobacco control, the assessment indicates that a country’s progress should not be judged solely by the percentage of cigarette retail prices accounted for by taxes.
Instead, the relationship between taxation, retail prices and smoking behaviour should remain central to evaluating the effectiveness of tobacco control policies.
Kays Monday, 02 November 2026 01:19 PM
.....and the highest level of untaxed beedi consumption too?
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