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.

 

 

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