Case Studies in Illicit Tobacco Trade: Colombia

This Case Study was written by Mauricio Cardenas, former Minister of Finance, Colombia and Visiting Professor, Columbia University. The Case Study examines the recent tax increases in Colombia that were adopted in tandem with stronger law enforcement measures and increased penalties for violations. Based on the evidence presented in the Case Study, the author concludes that there is no link between increasing tobacco taxes and the illicit trade of tobacco products. The Case Study notes that increasing taxes on tobacco reduced the number of cigarette packs sold, while also increasing government revenues.