News

back to News

Research Alert: Mexico (October 2020)

New Research: Spotlight on Mexico!
Tobacco Tax Revenues and Public Health Spending in Mexico
This Policy Brief is written by the Centro de Investigación Económica y Presupuestaria (CIEP) in Mexico. The policy brief discusses the current gap between tobacco tax revenues and the cost of treating tobacco-related diseases. The authors propose policy solutions to increase the funding of the health sector, including increasing the IEPS on tobacco and earmarking this tax revenue for the health sector.
Key Findings:
  • Increasing tobacco taxes results in a decrease in consumption, along with an increase in government revenue.
  • The cost of treating smoking-related disease is greater than the actual expenditure on treatment and greater than the tax revenue collected.
  • Earmarking the funds collected from tobacco tax revenue is legally possible and would help cover the costs of tobacco-related diseases in the most vulnerable members of the population.
  • An increase in tobacco taxes increases the revenue distributed to the States. 

This Report is written by the Centro de Investigación Económica y Presupuestaria (CIEP) in Mexico. The Report presents a simulation of potential tobacco tax increases and their impacts on cigarette prices, cigarette consumption, and government revenues. The report further explores how these funds could be used to prevent tobacco use in Mexico, and evaluates possible legal mechanisms toward this goal.




CIEP also recently released a Tobacco Tax Simulator, allowing users to test how different excise tax rates impact the price of cigarettes, cigarette sales, government excise tax revenues, and how these revenues could fund public health in Mexico.
 
Increasing the Cigarette Excise Tax Would Delay Smoking Initation in Mexico
This Policy Brief, written by Martin Gonzalez-Rozada and Fiona Franco Churruarin, examines the impact that cigarette excise taxes have on smoking initiation in Mexico.

Key Findings:
  • Increasing the cigarette excise taxes, and therefore, the price, reduces smoking initiation.
  • Higher prices of cigarettes delay smoking initiation, which is proven to have substantial health benefits.
  • This policy benefits women, the poor, and youth the most, as they are more responsive to price.
About Us 

Based in the Health Policy Center at the University of Illinois at Chicago (UIC), the Tobacconomics team conducts economic research to shape global tobacco control policies, and we also partner with economic policy think tanks in low- and middle-income countries to build the local evidence base for more effective tobacco tax systems. UIC is a partner of the Bloomberg Initiative to Reduce Tobacco Use.
Website Website
Email Email
Twitter Twitter
Copyright © 2020 Tobacconomics, All rights reserved.

Our mailing address is:
University of Illinois at Chicago
Institute for Health Research and Policy
Attn: Tobacconomics
1747 W. Roosevelt Road
5th Floor (Room 558) 
Chicago, IL 60608

Want to change how you receive these emails?
You can update your preferences or unsubscribe from this list.