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In addition, a specific component of MX$0.04 (US$0.003) per cigarette was added to the SPST in 2010, which was increased to MX$0.35 (US$0.03) in 2011.11 The STPS (both the ad valorem and specific component), together with the value-added tax (VAT) of 16% of the final price, accounted for 54.2% of the price to the public in 2006, 58.9% in 2007, 60.2% in 2008, 61.4% in 2009, 62.7% in 2010 and 68.8% in 2011.12 Data from Mexico support evidence regarding the effectiveness of cigarette taxes in reducing consumption,7 ,12 ,13 while suggesting that the two tobacco companies (PMI and BAT) that control 98% of the Mexican market have segmented the market into low-cost discount cigarettes, mostly comprising national brands, and significantly higher-cost premium brands, mostly comprising international brands.7 This process of market segmentation appears to have accompanied the ad valorem taxes that were implemented in the years prior to 2010

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