SlideShare una empresa de Scribd logo
1 de 16
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
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.
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
Health Impact of Tobacco Use in Hungary
                   4




                       • Highest rate of all-
                         cancer mortality
                         among European
                         countries
                       • Significant impact on
                         women
Health Impact of Tobacco Use in Hungary
                         5




• Highest rate of lung
  cancer mortality
  among European
  countries
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
Tobacco Exise Tax and Consumption in Hungary
                                                  7




Source: Hungary National Tax and Customs Administration
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
Smuggling
  Routes    9
 Through
 Hungary
Chemical Analysis

  CONTRABAND AND
   LEGAL TOBACCO
OBTAINED IN HUNGARY
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
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
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
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
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
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.

Más contenido relacionado

Destacado

Raisin maths
Raisin mathsRaisin maths
Raisin mathsmeeney
 
Evaluating web resources spring2013rev
Evaluating web resources spring2013revEvaluating web resources spring2013rev
Evaluating web resources spring2013revLynn Berard
 
SkyscraperInc_At_A_Glance215 copy
SkyscraperInc_At_A_Glance215 copySkyscraperInc_At_A_Glance215 copy
SkyscraperInc_At_A_Glance215 copydemarco22
 
Child labour in our world by Rose.
Child labour in our world by Rose.Child labour in our world by Rose.
Child labour in our world by Rose.meeney
 
MAPPA Project: Metodologie Applicate alla Predittività del Potenziale Archeol...
MAPPA Project: Metodologie Applicate alla Predittività del Potenziale Archeol...MAPPA Project: Metodologie Applicate alla Predittività del Potenziale Archeol...
MAPPA Project: Metodologie Applicate alla Predittività del Potenziale Archeol...Progetto Mappa
 
Presentación foro. septiembre 14 de 2011
Presentación foro. septiembre 14 de 2011Presentación foro. septiembre 14 de 2011
Presentación foro. septiembre 14 de 2011comunicadoreshabitat
 
Convergence in the Marketplace
Convergence in the MarketplaceConvergence in the Marketplace
Convergence in the MarketplaceMandar Ghanekar
 
Positioning Platforms for Smartphones
Positioning Platforms for SmartphonesPositioning Platforms for Smartphones
Positioning Platforms for SmartphonesMandar Ghanekar
 
Socially Responsible Marketing
Socially Responsible MarketingSocially Responsible Marketing
Socially Responsible MarketingMandar Ghanekar
 
Sigurnost osobnih i drugih osjetljivih podataka u cloudu - pravni pogled
Sigurnost osobnih i drugih osjetljivih podataka u cloudu - pravni pogledSigurnost osobnih i drugih osjetljivih podataka u cloudu - pravni pogled
Sigurnost osobnih i drugih osjetljivih podataka u cloudu - pravni pogledGoran Vojkovic, Ph.D.
 

Destacado (12)

Raisin maths
Raisin mathsRaisin maths
Raisin maths
 
The Sales Manager
The Sales ManagerThe Sales Manager
The Sales Manager
 
Evaluating web resources spring2013rev
Evaluating web resources spring2013revEvaluating web resources spring2013rev
Evaluating web resources spring2013rev
 
SkyscraperInc_At_A_Glance215 copy
SkyscraperInc_At_A_Glance215 copySkyscraperInc_At_A_Glance215 copy
SkyscraperInc_At_A_Glance215 copy
 
Child labour in our world by Rose.
Child labour in our world by Rose.Child labour in our world by Rose.
Child labour in our world by Rose.
 
MAPPA Project: Metodologie Applicate alla Predittività del Potenziale Archeol...
MAPPA Project: Metodologie Applicate alla Predittività del Potenziale Archeol...MAPPA Project: Metodologie Applicate alla Predittività del Potenziale Archeol...
MAPPA Project: Metodologie Applicate alla Predittività del Potenziale Archeol...
 
Presentación foro. septiembre 14 de 2011
Presentación foro. septiembre 14 de 2011Presentación foro. septiembre 14 de 2011
Presentación foro. septiembre 14 de 2011
 
Convergence in the Marketplace
Convergence in the MarketplaceConvergence in the Marketplace
Convergence in the Marketplace
 
Positioning Platforms for Smartphones
Positioning Platforms for SmartphonesPositioning Platforms for Smartphones
Positioning Platforms for Smartphones
 
Socially Responsible Marketing
Socially Responsible MarketingSocially Responsible Marketing
Socially Responsible Marketing
 
Avon Case study
Avon Case studyAvon Case study
Avon Case study
 
Sigurnost osobnih i drugih osjetljivih podataka u cloudu - pravni pogled
Sigurnost osobnih i drugih osjetljivih podataka u cloudu - pravni pogledSigurnost osobnih i drugih osjetljivih podataka u cloudu - pravni pogled
Sigurnost osobnih i drugih osjetljivih podataka u cloudu - pravni pogled
 

Similar a Srnt illicit trade bodrogi rogers and foley v3

E-Cigarettes: Promises & Pitfalls of Policy
E-Cigarettes: Promises & Pitfalls of PolicyE-Cigarettes: Promises & Pitfalls of Policy
E-Cigarettes: Promises & Pitfalls of PolicyLynneDawkins
 
Research on Tobacco Products Taxation for Global Tobacco Control
Research on Tobacco Products Taxation for Global Tobacco ControlResearch on Tobacco Products Taxation for Global Tobacco Control
Research on Tobacco Products Taxation for Global Tobacco ControlUCT ICO
 
Dr Konstantinos Farsalinos - E-Cigarette Summit 2014
Dr Konstantinos Farsalinos - E-Cigarette Summit 2014Dr Konstantinos Farsalinos - E-Cigarette Summit 2014
Dr Konstantinos Farsalinos - E-Cigarette Summit 2014Neil Mclaren
 
Comparison of e cigarette with air and smoke
Comparison of e cigarette with air and smokeComparison of e cigarette with air and smoke
Comparison of e cigarette with air and smokeRana Tayyarah
 
How Much THC Can You Put in Food?
How Much THC Can You Put in Food?How Much THC Can You Put in Food?
How Much THC Can You Put in Food?Evergreen Buzz
 
Legal Limits Set for Cannabis-Infused Foods
Legal Limits Set for Cannabis-Infused FoodsLegal Limits Set for Cannabis-Infused Foods
Legal Limits Set for Cannabis-Infused FoodsCannabis News
 
Europa cannabis hasish potenza 1
Europa cannabis hasish potenza 1Europa cannabis hasish potenza 1
Europa cannabis hasish potenza 1Carlo Rossi
 
What is wrong (and right) about the Tobacco Products Directive approach to E-...
What is wrong (and right) about the Tobacco Products Directive approach to E-...What is wrong (and right) about the Tobacco Products Directive approach to E-...
What is wrong (and right) about the Tobacco Products Directive approach to E-...Clive Bates
 
The Spanish tobacco tax loopholes and their consequences
The Spanish tobacco tax loopholes and their consequencesThe Spanish tobacco tax loopholes and their consequences
The Spanish tobacco tax loopholes and their consequencesUCT ICO
 
Interesting Things - March 2016
Interesting Things - March 2016Interesting Things - March 2016
Interesting Things - March 2016Andrew Brown
 
New e-inhalation products and potential health risks: The case for regulation
New e-inhalation products and potential health risks: The case for regulationNew e-inhalation products and potential health risks: The case for regulation
New e-inhalation products and potential health risks: The case for regulationUCT ICO
 
Interesting things about alcohol and other drugs - Dec 2016
Interesting things about alcohol and other drugs - Dec 2016Interesting things about alcohol and other drugs - Dec 2016
Interesting things about alcohol and other drugs - Dec 2016Andrew Brown
 
Tobacco smoke and it’s effects on gas exchange
Tobacco smoke and it’s effects on gas exchangeTobacco smoke and it’s effects on gas exchange
Tobacco smoke and it’s effects on gas exchangeFitriyani Achyar
 
Guar Gum Originating from India
Guar Gum Originating from India Guar Gum Originating from India
Guar Gum Originating from India v2zq
 

Similar a Srnt illicit trade bodrogi rogers and foley v3 (20)

E-Cigarettes: Promises & Pitfalls of Policy
E-Cigarettes: Promises & Pitfalls of PolicyE-Cigarettes: Promises & Pitfalls of Policy
E-Cigarettes: Promises & Pitfalls of Policy
 
Research on Tobacco Products Taxation for Global Tobacco Control
Research on Tobacco Products Taxation for Global Tobacco ControlResearch on Tobacco Products Taxation for Global Tobacco Control
Research on Tobacco Products Taxation for Global Tobacco Control
 
Dr Konstantinos Farsalinos - E-Cigarette Summit 2014
Dr Konstantinos Farsalinos - E-Cigarette Summit 2014Dr Konstantinos Farsalinos - E-Cigarette Summit 2014
Dr Konstantinos Farsalinos - E-Cigarette Summit 2014
 
Philippines tax report card
Philippines tax report cardPhilippines tax report card
Philippines tax report card
 
Comparison of e cigarette with air and smoke
Comparison of e cigarette with air and smokeComparison of e cigarette with air and smoke
Comparison of e cigarette with air and smoke
 
Nicotine Rapid Test Kit Presentation
Nicotine Rapid Test Kit PresentationNicotine Rapid Test Kit Presentation
Nicotine Rapid Test Kit Presentation
 
How Much THC Can You Put in Food?
How Much THC Can You Put in Food?How Much THC Can You Put in Food?
How Much THC Can You Put in Food?
 
Legal Limits Set for Cannabis-Infused Foods
Legal Limits Set for Cannabis-Infused FoodsLegal Limits Set for Cannabis-Infused Foods
Legal Limits Set for Cannabis-Infused Foods
 
Tobacco products directive - Specific aspects: ingredients, labeling, marketing
Tobacco products directive - Specific aspects: ingredients, labeling, marketingTobacco products directive - Specific aspects: ingredients, labeling, marketing
Tobacco products directive - Specific aspects: ingredients, labeling, marketing
 
E-Cigarettes - How should Public Health respond? - Linda Bauld
E-Cigarettes - How should Public Health respond? - Linda BauldE-Cigarettes - How should Public Health respond? - Linda Bauld
E-Cigarettes - How should Public Health respond? - Linda Bauld
 
Europa cannabis hasish potenza 1
Europa cannabis hasish potenza 1Europa cannabis hasish potenza 1
Europa cannabis hasish potenza 1
 
What is wrong (and right) about the Tobacco Products Directive approach to E-...
What is wrong (and right) about the Tobacco Products Directive approach to E-...What is wrong (and right) about the Tobacco Products Directive approach to E-...
What is wrong (and right) about the Tobacco Products Directive approach to E-...
 
The Spanish tobacco tax loopholes and their consequences
The Spanish tobacco tax loopholes and their consequencesThe Spanish tobacco tax loopholes and their consequences
The Spanish tobacco tax loopholes and their consequences
 
Presentation: Stop illicit trade of tobacco
Presentation: Stop illicit trade of tobaccoPresentation: Stop illicit trade of tobacco
Presentation: Stop illicit trade of tobacco
 
Interesting Things - March 2016
Interesting Things - March 2016Interesting Things - March 2016
Interesting Things - March 2016
 
New e-inhalation products and potential health risks: The case for regulation
New e-inhalation products and potential health risks: The case for regulationNew e-inhalation products and potential health risks: The case for regulation
New e-inhalation products and potential health risks: The case for regulation
 
Interesting things about alcohol and other drugs - Dec 2016
Interesting things about alcohol and other drugs - Dec 2016Interesting things about alcohol and other drugs - Dec 2016
Interesting things about alcohol and other drugs - Dec 2016
 
Tobacco smoke and it’s effects on gas exchange
Tobacco smoke and it’s effects on gas exchangeTobacco smoke and it’s effects on gas exchange
Tobacco smoke and it’s effects on gas exchange
 
Impact of Cigarette Excise Rate Increases on Tobacco Consumption and Tax Reve...
Impact of Cigarette Excise Rate Increases on Tobacco Consumption and Tax Reve...Impact of Cigarette Excise Rate Increases on Tobacco Consumption and Tax Reve...
Impact of Cigarette Excise Rate Increases on Tobacco Consumption and Tax Reve...
 
Guar Gum Originating from India
Guar Gum Originating from India Guar Gum Originating from India
Guar Gum Originating from India
 

Srnt illicit trade bodrogi rogers and foley v3

  • 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
  • 9. Smuggling Routes 9 Through Hungary
  • 10. Chemical Analysis CONTRABAND AND LEGAL TOBACCO OBTAINED IN HUNGARY
  • 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

  1. Hungarian Tax and Financial Control Administration’s Central-Hungary Regional Customs Directorate provided us with the following types of seized cigarettes:
  2. 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. 
  3. 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.