OCTOBER 13—18, 2014
Moscow, Russia

Today the sixth session of the Conference of the Parties adopted the guidelines on price and tax measures to reduce demand for tobacco

Today the sixth session of the Conference of the Parties adopted the guidelines on price and tax measures to reduce demand for tobacco

On the sixth session of the Conference of the Parties to the WHO FCTC held in Moscow this week, implementing guidelines for Article 6 of the WHO FCTC on price and tax measures to reduce demand for tobacco were adopted by the Committee.

 “We have been drafting this document for two years. Russian experts were among the key contributors within the working group that prepared the document”, said Oleg Salagay, Vice-President of the COP, Deputy Director of Department on International Cooperation and Public Relations within the Ministry of Healthcare of the Russian Federation.

«The recommendations use the world’s best practices and confirm that implementation of optimal taxation methods proven by various countries with different economies significantly influences the reduction of tobacco consumption”, added Oleg Salagay.

Implementing guidelines include several key provisions:

  • effective taxes on tobacco significantly reduce tobacco consumption and prevalence;
  • effective taxes on tobacco provide considerable income;
  • taxes on tobacco are economically effective and narrow inequality in health;
  • taxation systems and taxation management must be effective and efficient;
  • taxation policy is to be protected from the interests of tobacco industry.

This document recommends to the Parties to consider the opportunity of:

  • setting up regular procedures for tobacco taxes correction or revision at periodic intervals;
  • introducing systems of specific or mixed excise taxes with a fixed minimum level of the specific tax, since these systems have significant advantages over ad valorem taxation;
  • prohibiting or restricting sales to and/or importations by international travelers of tax- and duty-free tobacco products.

Aside from that, the Parties should adopt consecutive and long-term measures structuring their tobacco taxation policies and perform their regular monitoring, including their target tax rates, to accomplish their goals in terms of public healthcare, tax and budget issues; clearly define and duly empower tax payment control bodies; provide for information exchange between law enforcement bodies.