Research

Mexico Tobacco Tax Simulator

This Tobacco Tax Simulator was produced by Centro de Investigación Económica y Presupuestaria A.C. (CIEP) in Mexico. The simulator allows users to input the two components of the IEPS on tobacco: the fixed specific rate and the ad valorem. Based on these inputs, the simulator estimates the impacts of the tax on tax revenue collected; cigarette sales; price per cigarette pack, tax burden (tax share of retail price); and the revenue distributed to each state. The simulator also provides long-term impacts of the selected tax components in regard to avoided medical expenses and individual household income gains from longer working years of life.

The Tax Simulator can be found here.

A related Report and Policy Brief can be found here and here.