Taxation that encourages switching

Taxation of both cigarettes and less harmful alternatives to them are a critical when it comes to encouraging smokers to use less harmful alternatives to cigarettes. Many smokers come from low or low-middle income groups and price sensitivity is therefore particularly important. Reasoned taxation motivates smokers to switch. Tobacco is currently taxed under the EU Tobacco Excise Directive, which is currently under review. This paper considers the taxation and excise framework that would provide the most public health benefit in the European Union.