Anna Gilmore ^1*, Jeff Collin ², Joy Townsend ¹

¹ London School of Hygiene and Tropical Medicine
² Centre for International Public Health Policy, University of Edinburgh

^* To whom correspondence should be addressed. E-mail: anna.gilmore{at}lshtm.ac.uk.

	Abstract

Objectives. The International Monetary Fund encourages privatization of state-owned tobacco industries. Privatization tends to lower cigarette prices, which encourages consumption. This could be countered with effective tax policies. We explored how investment by British American Tobacco influenced tax policy in Uzbekistan during privatization there.

Methods. We obtained internal documents from British American Tobacco and analyzed them using a hermeneutic process to create a chronology of events.

Results. British American Tobacco thoroughly redesigned the tobacco taxation system in Uzbekistan. They secured (1) a reduction of approximately 50% in the excise tax on cigarettes, (2) an excise system to benefit its brands and disadvantage those of its competitors (particularly Philip Morris), and (3) a tax stamp system from which it hoped to be exempted so that competing brands would suffer.

Conclusions. Privatization can endanger effective tobacco excise policies, namely that of high tobacco excise taxes. The International Monetary Fund should review its approach to privatization and differentiate the privatization of an industry whose product kills from privatization of other industries.

Key Words: Health Law, Public Health Practice, Tobacco Control