Distributional Health and Financial Consequences of Increased Cigarette Tax in Iran: An ECEA
2021
This study examines the potential impact of a tax-induced cigarette price increase on financial and health outcomes across different socioeconomic groups in Iran. Using pooled cross-sectional data from Household Income and Expenditure Surveys (2002–2017) and population data from Iran in 2019, an extended cost-effectiveness analysis (ECEA) methodology is employed to model the effects of a hypothetical increase in cigarette tax. The analysis evaluates health benefits, health expenditures averted, additional tax revenues generated, changes in household expenditures on cigarettes, and financial risk protection among male Iranian smokers over a 60-year period following a 75% price increase. Results indicate that the tax increase would significantly reduce the number of smokers, save millions of years of life, and eliminate substantial health expenditures. Additionally, the policy could raise considerable tax revenues, with a significant portion of the tax burden borne by higher income quintiles. The study concludes that increasing cigarette tax could yield both health and financial benefits, particularly benefiting lower socioeconomic groups in terms of health gains, out-of-pocket savings, and financial risk protection against smoking-related diseases.
Distributional Health and Financial Consequences of Increased Cigarette Tax in Iran: An ECEA
Source:
Raei B, Emamgholipour S, Takian A et al. Distributional Health and Financial Consequences of Increased Cigarette Tax in Iran: Extended Cost-Effectiveness Analysis. Health Economics Review 2021; 11 (30). https://doi.org/10.1186/s13561-021-00328-w