LUXEMBOURG (chapter taken from "Tobacco and Health in the european Union - An overview" published by the European Bureau for Action on Smoking Prevention (BASP), 117 rue des Atrebates, 1040 Brussels, Belgium, tel +32 2 732 2468, fax +32 2 736 91 92, email BASP) I. General Information Population at 1.1.93 : 395,200 Projection for year 2000 : 409,000 Population +15 years (1992) : 319,900 Area : 2,600 km2 Density per km2 : 152,8 Gross Domestic Product per habitant in Purchasing Power Standard (PPS)1 in 1992 : 20, 538 (EU average : 15,616) II. Consumption of tobacco 1. Prevalence of smoking Adult smoking rates fell from 33% (41% of men and 25% of women) in 1987 to 27% in 1993 (32% men and 26% women). These figures feature the recently familiar trend of a marked decrease in the number of male smokers and a slight increase in female smokers.2 In Luxembourg, women smoke on average 16 cigarettes daily in comparison to men who smoke an average of 19 cigarettes daily. Only 3% of women smoke packets of cigarettes a day in comparison to 12% of men. Social class also appears to determine smoking habits: 25% of the white collar/skilled sector smoke in comparison to 36% of the working class sector. In 1987, a decrease in smoking prevalence occurred in all age groups, apart from among women aged 35-49 whose smoking prevalence increased from 29% to 34%. Percentage of smokers by age and sex for 1987 and 1993 Age Group Male Female 1987 1993 1987 1993 15-24 37% 33% 29% 25% 25-34 41% 35% 36% 35% 35-49 42% 33% 29% 34% 50-64 47% 35% 17% 17% 65+ 29% 18% 8% 11% Source : Ligue Luxembourgeoise contre le Cancer An enquiry by the Association Luxembourgeoise contre le Cancer carried out in 1991 found a 12% smoking prevalence among doctors. This was a decrease of 9.5% in comparison to the number of doctors smoking 5 years beforehand. III. Price and Taxation 1. Price of the five most sold cigarette brands The five most sold cigarette brands in 1993 were Belga, Ducal, Maryland, Marlboro and Lucky Strike. The recommended retail selling price of these brands in August 1994 was as follows: Brand Price in FLx Price in ECU* Belga (25) 85 2.14 Ducal (25) 85 2.14 Maryland (25) 85 2.14 Marlboro (20) 80 2.01 Lucky Strike (20) 76 1.91 * 1 ECU = 39.71 FLx 2. Evolution of cigarette prices since 1986 From 1985-1994, the price of a pack of 20 Marlboro cigarettes has increased by 74% from 46 to 80 Lx francs and the price of a 25 pack of Belga cigarettes has increased by 70% from 50 to 85 Lx francs. During the 1985-1990 period, the real price of tobacco (taking account of the effect of inflation) increased by 14%. 3. Tobacco in the consumer price index Tobacco products have been excluded from the consumer price index since 1 January 1991. 4. Level and structure of taxation at 15.01.94 Product Specific Ad Valorem VAT as % Total tax excise excise as % of RSP incidence (ECU) of RSP as % of RSP Cigarettes 2.73 54.30% 10.71% 66.46% Fine-cut - 31.50% 10.71% 42.21% Cigars and N/A 10.00% 10.71% 20.71% Cigarillos Other Smoking N/A 31.50% 10.71% 42.21% tobacco 5. Government tax revenue since 1985 Government revenue from tobacco taxes has increased from 4.7 billion Lx francs in 1985 to 7.5 billion in 1992 (178 MECU). Year Revenue in Lx Francs ECUs 1989 5.1 billion 1.2 billion 1990 5.6 billion 1.3 billion 1991 6.3 billion 1.5 billion 1992 7.5 billion 1.8 billion 6. Price of a pack of cigarettes in relation to one hour of work The average hourly gross salary for an industrial worker in October 1992 was 9.01 ECU - enough to buy 5 packs of Marlboro cigarettes (20). 7. Tobacco as a percentage of the household budget Tobacco expenditure as percentage of annual household expenditure 1986 - 1991 Year Expenditure Final Consumption Tobacco (mio ECUs) (mio ECUs) overall expenditure on tobacco of households as % of (mio ECUs) (mio ECUs) overall expendi- ture 1986 178 2,974 6% 1987 182 3,209 5.7% 1988 184 3,378 5.4% 1989 202 3,658 5.5% 1990 228 4,030 5.6% 1991 225 4,452 5.7% Source : Eurostat IV. Market Profile 1. Characteristics of the market The five most popular cigarette brands in Luxembourg, in alphabetical order, are Belga (25), Ducal (25) and Marlboro (20). On the other hand, in 1991, the most popular brand of cigarettes smoked in Luxembourg was Maryland. This change illustrates the volume of cross-border trade with the Grand Duchy. 2. Tobacco retail outlets In 1991, there were 220 tobacco retail outlets and 25 wholesalers in Luxembourg (3). 3. Expenditure on tobacco advertising There are no figures available at this time. IV. The costs of smoking 1. Number of tobacco-related deaths In 1990, tobacco was responsible for 575 deaths in Luxembourg (518 men and 57 women). Tobacco-related deaths 1990 Male Female Total All Cancer 240 20 260 (Lung Cancer) 150 15 165 Vascular 156 22 178 Respiratory 81 9 90 Other 41 6 47 Source : Peto, Lopez et al, 1994. The 289 persons who die in the age group between 35 and 69 years are estimated to have lost 21 years of life because of tobacco use. 2. Evolution of the number of tobacco-related deaths Tobacco was responsible for 272 deaths in 1955. It is estimated that deaths from tobacco will amount to 473 in 1995. Altogether, from 1950 to 2000, it is estimated that 26,500 will have died form smoking in Luxembourg. V. Legislation 1. Advertising In Luxembourg, all advertising is subject to restrictions. The law of 24 March 1989 on advertising restrictions for tobacco and tobacco products forbids advertising in the following cases: - broadcast or announcement in theatres or any other places open to the public, - on radio and television, - in pamphlet, sticker, or sign (including illuminous) format, - on air or boat transport, - through the distribution of free samples of tobacco products, - through the use of the emblem, make or name of a tobacco brand in connection/association with any other products other than those directly linked to tobacco usage, - in all publications sold to minors, - in stadiums, public and private sports grounds and in swimming pools. The measures above do not apply to advertising within points of sale nor do they apply to billboard advertising as long as they only show the name of the brand and include no text or graphic illustration. Advertisements do not include health warnings. 2. Public places The Law of 24 March 1989 and the Grand Duchy Decree of 19 June 1990 prohibit smoking in the following areas and facilities: -medical establishments, hospital rooms as well as areas utilised for reception of the public or the care and accommodation of sick people, lifts, corridors and waiting rooms; -dentists' and doctors' waiting rooms; -pharmacies; -all educational establishments; -areas where those of less than 16 years of age are catered for or accommodated; -sports halls and in covered grounds, both before and during sports events; -cinemas, auditoria and theatres; -museums, art galleries, libraries and lecture theatres that are open to the public; -public buildings where non-smoking signs are present. Violations of these measures are punishable by fines of 250-2,500 francs (6.25 to 62.5 ECU) Smoking is prohibited on all regular bus routes, all national trains (those which travel internally) and on all flights of the national airline (LUXAIR) of less than one hour's duration. Smoking carriages are provided on international trains and on flights of more than one hour's duration. 3. Labelling and tar content The Grand Duchy Decree of 19 January 1990 implements the EU Directives on the labelling of tobacco products and tar content. 4. Sales to children Sales to children are not regulated in Luxembourg. 5. Oral tobacco The sale of oral tobacco is banned, in principle, by EC Directive 92/41 of the 1 July 1992. Discussions are in progress and oral tobacco will soon be banned under a new law. VI. Tobacco industry 1. Structure of the tobacco industry There is one cigarette manufacturer in Luxembourg, namely Heintz van Landewyck. According to Pieda, 320 people were employed in the tobacco industry in 1991 in Luxembourg. For more information, please see the country profile for Belgium. VII. Agriculture Luxembourg does not produce any tobacco. VIII. Comments It is estimated that only 20% of the cigarettes sold in Luxembourg are actually bought by Luxembourgers. The Luxembourg Government directs a price policy which aims to attract cross-border trading and tobacco prices still remain 20-25 % less expensive than in Belgium and Germany. Subsequently, the Grand Duchy is often reluctant to provide sales figures. Despite the low price of tobacco, consumption is falling in Luxembourg and anti-cancer activities are generally at a well developed level. 1 A unit of measurement which helps to eliminate the effects of diferences in price levels and to make comparison in real terms. 2 Ligue Luxembourgeoise contre le Cancer 3 Die Tabakzeitung