Exploiting a low tax system: non-tax-induced cigarette price increases in Taiwan 2011-2016.
Wayne GaoMattia SannaJ Robert BranstonHung-Yi ChiouYi-Hua ChenAllison WuChi Pang WenPublished in: Tobacco control (2019)
Low and unchanged tobacco taxes enable tobacco companies to use aggressive pricing and segmentation strategies to increase the real price of cigarettes without making them less affordable while simultaneously maintaining customers' loyalty. It is crucial to continue monitoring the industry's pricing strategies and to regularly increase taxes to promote public health and to prevent tobacco industry from profiting at the expense of government revenues.