Taxation policy impact on tobacco sales in Argentina
More details
Hide details
1
Centro de Estudios de Estado y Sociedad (CEDES), Argentina
Publication date: 2018-03-01
Tob. Induc. Dis. 2018;16(Suppl 1):A120
Download abstract book (PDF)
KEYWORDS
TOPICS
ABSTRACT
Background:
In the last 10 years the increase in purchasing power in Argentina without
a strong tobacco taxation policy led to an increase in cigarettes affordability.
But in April 2016 a presidential decree increased from 60% to 75% the tobacco internal
tax (excise tax) that generated an increase in cigarettes prices by 50%. The
objective of this study was to describe the evolution of cigarettes sales during
the last 10 years, particularly in 2016 after the price increase.
Methods:
Official data from the Ministry of Agriculture on
cigarettes sales was analyzed. Trends from 2006 to 2017 were considered for the
analysis.
Results:
In 2006 1,993 million of 20 cigarettes packs
were sold reaching 2,031 million in 2015. During that period a peak of 2,188
million was reported in 2011 (when national tobacco control law was enacted).
Since then, reductions of 0.7-2.4% were observed annually. In 2016, 1,794
million of 20 cigarettes packs were sold, representing a reduction of 11.7%
compared with 2015. In 2016, an average of 149.5 million packs was sold monthly
compare with a monthly average of 169 million in 2015. May 2016 (after the
increase) was the month with fewer sales with 98.6 million.
Conclusions:
Cigarette sales were affected by the tobacco tax
increase in Argentina, showing responsiveness to price variations. The
enactment of a taxation national law could add sustainability to this
successful strategy.