The study demonstrates that fine-cut consumers are very different from cigarette consumers and are characterised by higher price-sensitivity and by affordability constraints.
There is significant variation in fine-cut tobacco products and use across the EU as well as in smoking prevalence between various product categories. The prevalence of everyday smokers varies widely among fine-cut consumers across countries.
An obvious correlation exists between the highest levels of illegal and non-domestic consumption (e.g. France, UK, Ireland, Poland and Finland) and the highest taxation rates applied to fine-cut toconsbacco, in comparison with cigarettes. The figures clearly show that any alignment of tobacco taxation, regardless of the products’ specificities, will prevent fine-cut tobacco from fulfilling its buffer function, leading to increased illegal trade of cigarettes and driving down government revenues.
Read more about the relationship between tax and illegal trade