1. I M PA C T O F I L L I C I T T R A D E O N TO B A C C O C O N S U M P T I O N ,
LOST REVENUES, AND PRODUCT HARM:
THE HUNGARIAN EVIDENCE
J O Z S E F B O D R O G I 1, T O D D R O G E R S 2, K R I S T I E F O L E Y 3
1. CORVINUS UNIVERSITY, BUDAPEST, HUNGARY
2. RTI INTERNATIONAL, RESEARCH TRIANGLE PARK, NC, USA
3. DAVIDSON COLLEGE, DAVIDSON, NC, USA
2. Acknowledgement and Conflict of Interest
2
Funding provided by Grant # 1 R01 TW007927-01 from the
Fogarty International Center, the National Cancer Institute,
and the National Institutes on Drug Abuse (PI: KL Foley)
No conflicts of interest declared by the authors.
3. Presentation Goals
3
• Health impact of tobacco use in Hungary
• Illicit tobacco trade in Hungary
• Routes
• Relationships among taxation, illicit trade and
consumption
• Chemical analysis of contraband tobacco in
Hungary
4. Health Impact of Tobacco Use in Hungary
4
• Highest rate of all-
cancer mortality
among European
countries
• Significant impact on
women
5. Health Impact of Tobacco Use in Hungary
5
• Highest rate of lung
cancer mortality
among European
countries
6. Mixed System of Tobacco Taxes in Hungary
6
• Minimum excise tax
more than doubled
since 2004; now
24,920 HUF per 1000
cigarettes
• Specific excise tax
raised fourfold since
2001; now 12,500 HUF
per 1000 cigarettes
• Ad valorem excise tax
nearly doubled since
2001; now 31%
Source: Hungary National Tax and
Customs Administration
7. Tobacco Exise Tax and Consumption in Hungary
7
Source: Hungary National Tax and Customs Administration
8. Tax Avoidance: Illicit Tobacco Trade
8
32% of world export are funneled into illict trade,
355M pieces/yr are smuggled
Joossens & Raw, 1998, Tobacco Control
In Hungary:
In a few countries:
Source: Merriman et al. National Bureau of
Economic Research, Cambridge, MA.
• Smuggling is critical issue
in EU (10 billion euro loss
annually) • Proportion is relatively high
• Budget loss: 10 million euro/year
11. Methodology
Sample (Central Regional Customs Directorate)
• Ukrainian cigarettes with tax stamp
• Serbian cigarettes with tax stamp
• Chinese brand cigarettes without tax stamp
• Two locally-purchased brands were used as controls
Chemical Analysis
• Metals in cigarette aerosol
• Benzene, Toluene, Ethylbenzene, Xylenes (BTEX) in
cigarette aerosol
• Polycyclic aromatic hydrocarbons (PAHs) in active and
passive cigarette aerosol samples
12. Metal Components in Tobacco Aerosol
450 Serbian
Cadmium levels 2-4 times
400 higher in contraband than Ukrainian
legal cigarette smoke Chinese
% Relative to Control
350
aerosol.
300
250
200
150
100
50
0
Cadmium Chromium Copper Manganese Lead Zinc
13. BTEX Components in Tobacco Aerosol
Between .3-.7x
higher for Ukranian
80.00 and Chinese Serbian Ukrainian Chinese
70.00 products
% Relative Control
60.00
50.00
40.00
30.00
20.00
10.00
0.00
-10.00 Benzene Toluene Ethylbenzene Xylenes
141 ug 370 ug 47.5 ug 163 ug
14. Polycyclic Aromatic Hydrocarbons in Tobacco Aerosol
PAH content 3-5 times higher in contraband.
18 Significantly higher concentrations of Serbian
naphthalene are observed. Ukrainian
16
Concentration (ug/cigarette *103)
Chinese
14 Control
12
10
8
6
4
2
0
Total PAH Active Total PAH Naphthalene Napthalene
Passive Active Passive
15. Tax, Trade, Composition & Consumption
15
• Illicit trade a critical issue in Hungary
• Despite 18 tax increases since 2001, consumption
remained relatively stable between 2004-2010
• Customs activities increased in late 2000s, taxes
increased again, and consumption appears to be
on modest downward trend
• Chemical analysis reveals control bad, contraband
worse
• Recent increased Customs activity coupled with
comprehensive, clean air laws (2012) consistent
with FCTC is hopeful
16. Thanks to…
16
National Institute Of Environmental
Health, National Medical Officers Office In Budapest
Hungary, Including:
Gyula Dura, Timea Begszaszi, Brigitta Szalay, Eszter
Nagy, Eva Toth, Judit Paller
Dr. Cindy Hauser, Chair of Environmental Studies
and Associate Professor of Chemistry, Davidson
College, Davidson, N.C.
Notas del editor
Hungarian Tax and Financial Control Administration’s Central-Hungary Regional Customs Directorate provided us with the following types of seized cigarettes:
Tobacco smoke aerosolAntimony, tin, titanium and vanadium were not present in any of the aerosol samples in a detectable amount. Arsenic, iron, nickel and mercury were present in smaller or similar amounts in the contraband cigarettes compared to the legal tobacco products (table 2, figure 6).In the smoke aerosol of Chunghwa cigarettes the level of cadmium was 4 times that of the controls, while copper was 67%, manganese 86%, lead 33% and zinc 17% higher in Chunghwa than in the controls.The smoke aerosol of the Serbian Floyd cigarettes had two times the cadmium content of the controls. There was also 13% more chrome and 11% more lead compared to the legal cigarettes.Priluki, the cigarette of Ukrainian origin, contained twice as much cadmium, 44% more copper, 22% more lead, and 17% more zinc than the legal controls.
The results of the BTEX tests.The benzene, toluene and ethyl-benzene contents of Floyd cigarettes were similar to the control cigarettes; however, they contained 14% more xylene (table 3, figure 7).The aerosol of the smoke of the Ukrainian Priluki cigarettes contained 48% more benzene, 64% more toluene, 52% more ethyl-benzene and 48% more xylene compared to the BTEX load of the smokes of the legal cigarettes.The BTEX contents of the tobacco smoke from Chunghwa cigarettes also showed marked differences when compared to the legal controls. There was 30% more benzene, 32% more toluene, 62% more ethyl-benzene and 68% more xylene in the contraband cigarettes.