Estimated increase in tobacco taxes in 12 Latin American countries

October 1, 2020

Par: communication@cnct.fr

Dernière mise à jour: October 1, 2020

Temps de lecture: 3 minutes

Estimation d’une augmentation des taxes sur le tabac dans 12 pays d’Amérique latine

A new study[1] evaluates in 12 Latin American countries the consequences of smoking in terms of mortality, diseases, number of years of healthy life lost, and related health costs. A model demonstrates the effectiveness of possible increases in tobacco taxes on the major health and economic costs of its consumption.

An ambitious regional study

This work concerns the following countries: Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, Honduras, Mexico, Paraguay, Peru and Uruguay. The study is based on a probabilistic socio-fiscal micro simulation model from statistical and hospital databases for each country. The data produced concern mortality, diseases, and the number of years of healthy life lost. Direct health costs were estimated for each tobacco-related disease.

Evaluating lives saved by tax increases

According to this study, smoking is responsible each year for all these countries for approximately 12% (18% in Chile) of deaths (345,000 deaths), 21 million illnesses, 8.77 million years of healthy life lost and 27 billion US$ in direct medical costs. Overall, the health costs attributable to smoking represent 7% of the health budgets of these countries or 0.6% of their gross domestic product.

Raising tobacco taxes reduces consumption, prevents disease and mortality, which translates into reduced health care costs and poverty. Researchers estimate that a 50% increase in tobacco prices through taxes would prevent more than 300,000 deaths and gain 9 million years of healthy life over 10 years. Tax revenues from traditional cigarette sales cover only 36% of smoking-related health care costs. The economic benefits of such an increase would be US$58 billion, through avoided health costs (US$23 billion) and increased tax revenues (US$35 billion).

The need for stronger tax policy and anti-smoking regulations

In Latin America, taxation as a tool to combat tobacco is underused, as demonstrated by the low cost of traditional cigarettes in these countries compared to other regions of the world. Although most Latin American countries (with the exception of Argentina and Cuba) have ratified the WHO Framework Convention on Tobacco Control, many have policies in this area that are still fragile. Pressure, combined with misinformation, from the tobacco industry and its associated interest groups often delays the definition and implementation of effective measures in these countries.

Keywords: Taxation, Tobacco, Latin America ©Tobacco Free Generation
[1] Andrés Pichon-Riviere, PhD,Andrea Alcaraz, MD, Alfredo Palacios, MSc Belén Rodríguez, MD, Luz Myriam Reynales-Shigematsu, PhD, Márcia Pinto, DSc et al. The health and economic burden of smoking in 12 Latin American countries and the potential effect of increasing tobacco taxes: an economic modeling study, The Lancet, Volume 8, issue 10, E1282-E1294, October 01, 2020 National Committee Against Smoking |

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