Estimating the Distributional Impact of Increasing Taxes on Tobacco Products in Armenia
2018
Smoking is considered the leading risk factor for mortality among the Armenian population. The authors conducted an extended cost-effectiveness analysis (ECEA) on increases in the excise tax on cigarettes in Armenia. Based on the World Health Organization recommendations, they analyzed the impact of a 75% increase of excise tax on the retail price of cigarettes.
The ECEA found large health and financial benefits to the excise tax. It averted about 88,000 premature deaths, US$63 million of OOP medical expenditures, 22,000 poverty cases, and 33,000 cases of catastrophic health expenditures. The government would save around US$26 million on tobacco-related treatment costs. It was also found to have pro-poor benefits, half of the premature deaths and 30% of poverty cases averted reached the bottom 40% of the Armenian population.
Estimating the Distributional Impact of Increasing Taxes on Tobacco Products in Armenia
Source:
Postolovska I, Lavado R, Tarr G, Verguet S. The Health Gains, Financial Risk Protection Benefits, and Distributional Impact of Increased Tobacco Taxes in Armenia. Health Systems & Reform 2018; 4 (1): 30-41. https://doi.org/10.1080/23288604.2017.1413494