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Cost Effectiveness of the SSB Excise Tax in Mexico

2019

An excise tax of 1 peso per liter on sugar-sweetened beverages was implemented in Mexico in 2014. This analysis estimates the cost-effectiveness of this tax as well as an alternative tax scenario of 2 pesos per liter. A cohort simulation model calibrated for Mexico was used to project the impact of the tax over ten years.

Results showed that the current tax is projected to prevent 239,900 cases of obesity, 39 percent of which would be among children. It could also prevent 61,340 cases of diabetes, lead to gains of 55,300 quality-adjusted life-years, and avert 5,840 disability-adjusted life-years. The tax is estimated to save $3.98 per dollar spent on its implementation. Doubling the tax to 2 pesos per liter would nearly double the cost savings and health impact. 

 

Source:

Basto-Abreu A, Barrientos- Gutiérrez, Vidaña-Pérez D et al. Cost Effectiveness of the Sugar-Sweetened Beverage Excise Tax in Mexico. Health Affairs 2019; 38 (11). https://doi.org/10.1377/hlthaff.2018.05469

Not open access