Distributional Effects of Tobacco Tax Increases across Mexico: An ECEA
2022
This study examines the distributional impacts of a one-peso tobacco tax increase in Mexico, focusing on health, poverty, and financial outcomes at the subnational level. Utilizing an extended cost-effectiveness analysis, the research estimates various metrics such as life-years gained, smoking attributable deaths averted, treatment costs averted, and financial impacts by income group across five regions. Findings reveal that the tax increase would lead to significant benefits, including approximately 1.5 million smokers quitting across the regions, resulting in nearly 630 thousand premature deaths prevented and 12.6 million life years gained. Notably, the bottom income quintile would experience three times more life years gained than the top quintile, with the most deprived seeing the greatest gains, particularly in the South region. Moreover, the increase would prevent individuals from falling into poverty and experiencing catastrophic health expenditures, with substantial additional tax revenues generated. Ultimately, the study underscores that the most substantial benefits of the tax increase would accrue to the poorest segments of the population, particularly in the South, highlighting the potential of tobacco taxes to promote equity and contribute to achieving sustainable development goals regarding non-communicable diseases.
Distributional Effects of Tobacco Tax Increases across Mexico: An ECEA
Source:
Saenz-de-Miera B, Wu DC, Essue BM et al. The Distributional Effects of Tobacco Tax Increases across Regions in Mexico: An Extended Cost-Effectiveness Analysis. International Journal of Equity in Health 2022; 21 (8). https://doi.org/10.1186/s12939-021-01603-2