Southeast Asia: Illicit Tobacco Indicator Report Debunked

Source from:  Manila Bulletin 07/23/2014

The Southeast Asian Tobacco Control Alliance (SEATCA) based in Thailand has debunked the Asia-11 Illicit Tobacco Indicator report published by the International Tax and Investment Center (ITIC) and Oxford Economics (OE).

The report was the subject of a media briefing on the tobacco industry led by Peter Wallace of the Wallace Business Forum held at Fairmont Hotel in Makati last month.

SEATCA, a multi-sectoral group, focuses on improving tax systems for tobacco control in Cambodia, Indonesia, Laos, Philippines, Vietnam.

SEATCA Director Bungon Rithiphadee of the Bangkok said that "higher taxes on tobacco lead to higher prices for tobacco products which immediately discourage non-smokers from starting and current smokers from continuing with their harmful habit."

He revealed that the authors of the report have done road shows to release the report in individual countries to provide greater publicity to the findings and reach policy makers.

In its 17-page official critique published on its website, SEATCA described the commissioned report as "more myth than fact" and "uses flawed methodology, and results in skewed findings supportive of the tobacco industry's positions on taxation."

SEATCA also called into question the report's integrity by saying that one of the publishers, the ITIC, despite declaring itself as an independent non-profit research and education foundation, is sponsored by tobacco conglomerates which included allegedly Philip Morris International (PMI).

Together with the UK-based OE, the Asia-11 report, "while being presented as an independent study, was funded by PMI, prepared by ITIC and OE according to agreed terms of reference provided by Philip Morris Asia Ltd., and relied on inputs and data given by the tobacco industry, cannot be considered as a neutral stakeholder on this issue," SEATCA pointed out.

"The Asia-11 Report is therefore another attempt of the tobacco industry to protect its profits and to counter the public health benefits of tobacco taxation by persuading governments that tax increases will result in increased illicit trade and subsequent revenue losses," SEATCA said.

It said the report even faulted governments for raising taxes and implementing other effective (labeled by the industry as "excessive") tobacco control measures to protect public health in compliance with the FCTC's objectives.

The Asia-11 report in 2012 estimated at 108.7 billion cigarettes the Philippines' total tobacco consumption (legal and illicit).

Of this figure, 5.9 percent or 6.4 billion cigarettes, were considered to be illicit while majority or 6.1 billion sticks accounted for domestic illicit. Enditem