Tobacco use imposes heavy social and economic costs, with over 29 million adults consuming tobacco and nearly half of households reporting use. Evidence from the HIES (2018–19) shows that tobacco spending crowds out essential expenditures on food, health, education, and housing – especially among poorer households. Following the 2017–18 excise tax cut, cigarette prices fell by 27% in real terms, driving a 27% rise in household consumption. This policy brief underscores the urgent need for stronger tobacco taxation to reduce demand, protect household welfare, and advance public health.
