Increasing Tobacco Taxes Benefits the Poor
This Policy Brief was produced by Centro de Investigación Económica y Presupuestaria A.C. (CIEP) in Mexico. The Policy Brief shares the results of CIEP’s cost-benefit analysis of increasing tobacco taxes in Mexico. The Policy Brief notes that as tobacco prices increase, cigarette consumption decreases, especially among vulnerable households. Additionally, the Policy Brief shows that vulnerable households increase their available income by spending less on medical bills and earning higher income due to more productive years of life. The Policy Brief concludes that increasing taxes on tobacco products would have a progressive effect on income distribution in Mexico.
A corresponding Report can be found here.
A corresponding Policy Brief can be found here.
An updated Policy Brief simulates the effects of increasing the specific tax from 0.49 to 1.49 per cigarette can be found here.
A corresponding updated Report can be found here.
April 2020
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: Policy Brief
Topic(s): Cost-effectiveness, Economic consequences, Economic impacts of tobacco control, Health consequences, Healthcare costs, Impact on demand, Impact on the poor, Prevalence and consumption, Tax and price, Tax levels and structure, Tobacco use
Authors(s): Alejandra Macías, Ph.D.
Citation