State of Affairs Regarding Fiscal and Affordability Aspects of Tobacco in Argentina

pp. 140-144

Abstract

Background: Fiscal measures aimed at raising the price of tobacco products are an unsettled debt of the Argentine State to reduce tobacco use and protect public health.
Objective: The aim of this study was to review the “state of the art” regarding the economic aspects of tobacco epidemic in Argentina and its impact on public health.

Methods: A narrative review was performed presenting evidence about the impact of the increase in prices on the use of tobacco products.

Results: In Argentina, the price of cigarettes is one of the cheapest in the world. Affordability has increased by 100% in the last decade, particularly damaging the groups with the lowest incomes (the number of packets that could be bought with an average wage increased by 74% and by 102% in the case of a salary of the lowest tertile) with easy access to boys and girls. A cigarette tax increase via a fiscal policy that raises prices by 10 percent would reduce smoking by 3%. In turn, a price increase via higher taxes increases tax revenue. The additional funds collected could be assigned to cover part of the health costs of tobacco-related diseases (which nowadays double tax revenue) and to generate funds to sustain smoking cessation campaigns complementing the tax policy and other health and sustainable development measures.

Conclusion: Argentina should incorporate tax policies to reduce the use of tobacco products complementing the current regulations aimed at reducing their use and intensity.