Tobacco Taxes Promote Equity: Evidence from Around the Globe
This Brief was written by Tobacconomics and STOP (Stopping Tobacco Organizations and Products). The brief compiles findings on equity and tobacco taxes from the Tobacconomics Think Tanks Project and TobaccoTactics. This body of evidence from LMICs consistently demonstrates that tobacco use worsens inequality, diverting spending from beneficial and essential goods and services to tobacco products and treating tobacco-related diseases in low-income households. Effective tobacco tax policies are proven to discourage tobacco use, especially among poor individuals who are more sensitive to price. Thus, tobacco taxes are actually progressive and pro-equity in the medium- and long-term. Research also shows that tobacco taxes do not lead to a significant uptick in illicit trade. The brief concludes that tobacco taxation is an effective tool to promote equity and improve the financial and public health of lower-income individuals.
August 2023
Location(s): Global
Project: Think Tanks Project: Accelerating Progress on Tobacco Taxes in Low- and Middle-Income Countries
Content Type: Fact sheet
Topic(s): Economic impacts of tobacco control, Impact on demand, Impact on the poor, Tax and price, Tax avoidance and evasion, Tax levels and structure
Citation