Revenue and Tobacco-Related Expenditure (Policy Brief)
This Policy Brief was written by the Centro de Investigación Económica y Presupuestaria A.C. (CIEP) in Mexico. The policy brief shares the results of CIEP’s analysis of tobacco taxes in Mexico, including the effect on the price of cigarettes, the sales of cigarettes, and the revenue earned from tobacco taxes. Investigating several different scenarios, researchers consistently find that increasing the Excise Tax on Production and Services (IEPS) on cigarettes decreases the sale of cigarettes, while increasing the revenue collected from the IEPS. Using a public health, economic, and legal framework analysis, CIEP recommends that the earnings from these tobacco taxes be earmarked to fund the health system in Mexico, which is currently inadequate. The policy brief provides guidance on raising the IEPS on cigarettes, as well as amending necessary laws in order to earmark revenues for health purposes.
A corresponding Report can be found here.
A Tax Simulator can be found here.
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): Economic consequences, Economic impacts of tobacco control, Impact on demand, Tax and price, Tax levels and structure, Tobacco taxes revenues, Tobacco use
Authors(s): Adrián García Gómez