Analysis of Tobacco Taxation and Simulations in Mexico using LATINMOD
This Report was written by the Centro de Investigación en Alimentación y Desarrollo (CIAD) in Mexico. The Report estimates the impact of raising the specific component tax on cigarettes in two scenarios using the LATINMOD simulation platform. The first tax increase, adopted in January of 2020, updated the specific tax on cigarettes for inflation (to 0.49 pesos per stick) and the second scenario increases the specific component so that the total tax burden on cigarettes reaches the World Health Organization’s recommended 75 percent of the final retail price (to $1.35 pesos per stick). The Report presents the public health, revenue, and distributional impacts of these two scenarios and recommends the more ambitious tax increase as well as earmarking the additional revenues from the tax increase to food security programs in Mexico.
Location(s): Latin America and the Carribbean, Mexico
Project: Think Tanks Project: Accelerating Progress on Tobacco Taxes in Low- and Middle-Income Countries
Content Type: Report
Topic(s): Cost-effectiveness, Economic consequences, Economic impacts of tobacco control, Health consequences, Healthcare costs, Impact on demand, Prevalence and consumption, Tax and price, Tax levels and structure, Tobacco taxes revenues, Tobacco use
Authors(s): Luis Huesca, Ph.D., Linda Llamas Rembao, Abdelkrim Araar, Cesar Osmar Molina Dávila