Tobacco Taxation in Latin America and the Caribbean

TobaccoTaxationinLatinAmericaandtheCaribbean ACALLFORTOBACCOTAXREFORM TobaccoTaxationinLatinAmericaandtheCaribbean ACALLFORTOBACCOTAXREFORM ThisworkispublishedundertheresponsibilityoftheSecretary-GeneraloftheOECD.TheopinionsexpressedandargumentsemployedhereindonotnecessarilyreflecttheofficialviewsoftheMembercountriesoftheOECD. Thisdocument,aswellasanydataandmapincludedherein,arewithoutprejudicetothestatusoforsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersandboundariesandtothenameofanyterritory,cityorarea. Pleasecitethispublicationas: OECD(2024),TobaccoTaxationinLatinAmericaandtheCaribbean:ACallforTobaccoTaxReform,OECDPublishing,Paris,https://doi.org/10.1787/080cd662-en. ISBN978-92-64-72396-2(print) ISBN978-92-64-55030-8(PDF) ISBN978-92-64-36824-8(HTML) ISBN978-92-64-82671-7(epub) Photocredits:CoverdesignbyBaselineArtsLtdusingimagesfrom©AfricaStudio/Shutterstock.com. CorrigendatoOECDpublicationsmaybefoundat:https://www.oecd.org/en/publications/support/corrigenda.html. ©OECD2024 Attribution4.0International(CCBY4.0) ThisworkismadeavailableundertheCreativeCommonsAttribution4.0Internationallicence.Byusingthiswork,youaccepttobeboundbythetermsofthislicence(https://creativecommons.org/licenses/by/4.0/). Attribution–youmustcitethework. Translations–youmustcitetheoriginalwork,identifychangestotheoriginalandaddthefollowingtext:Intheeventofanydiscrepancybetweentheoriginalworkandthetranslation,onlythetextoforiginalworkshouldbeconsideredvalid. Adaptations–youmustcitetheoriginalworkandaddthefollowingtext:ThisisanadaptationofanoriginalworkbytheOECD.TheopinionsexpressedandargumentsemployedinthisadaptationshouldnotbereportedasrepresentingtheofficialviewsoftheOECDorofitsMembercountries. Third-partymaterial–thelicencedoesnotapplytothird-partymaterialinthework.Ifusingsuchmaterial,youareresponsibleforobtainingpermissionfromthethirdpartyandforanyclaimsofinfringement. YoumustnotusetheOECDlogo,visualidentityorcoverimagewithoutexpresspermissionorsuggesttheOECDendorsesyouruseofthework. AnydisputearisingunderthislicenceshallbesettledbyarbitrationinaccordancewiththePermanentCourtofArbitration(PCA)ArbitrationRules2012.TheseatofarbitrationshallbeParis(France).Thenumberofarbitratorsshallbeone. Foreword TheOrganisationforEconomicCo-operationandDevelopment(OECD)hasundertakenaprojectontobaccotaxationintheLatinAmericaandtheCaribbean(LAC)regionwiththefinancialsupportofBloombergPhilanthropies.TheprojectsoughttoidentifywaysofimprovingtheeffectivenessoftobaccotaxationandstimulatingdialogueontobaccotaxationpolicybetweenFinanceandHealthMinistriesintheLACregion.TheprojectwascarriedoutbytheOECD’sCentreforTaxPolicyandAdministration(CTPA)intandemwiththeOECD’sDirectorateforEmployment,Labour,andSocialAffairs.DeliverablesincludeareportontobaccotaxationintheLACregion,aregionalworkshopontobaccotaxation,andtechnicalsupportontobaccotaxationforcountriesinLAC. Thereport,oneoftheprojectoutputs,wasproducedbytheTaxPolicyandStatisticsDivisionoftheCTPA.WithintheCTPA,theworkonthereportwasledbyBertBrysandauthoredby,inalphabeticalorder,BertBrys,Jean-BaptisteCarpentier,CélineColin,CarolineMaschkaandMarionaMasMontserrat. TheHealthDivisionoftheOECD’sDirectorateforEmployment,Labour,andSocialAffairsprovidedsignificantinput.TheirinputswereledbyMicheleCecchiniandwrittenbyAlexaSegal,withcontributionsfromAliénorLerouge,FabienLenthy,MarionDevaux,andSabineVuik. TheauthorswouldliketothankthedelegatesofWorkingPartyNo.2onTaxPolicyAnalysisandTaxStatisticsinitsInclusiveFrameworkformatfortheirinputsandfeedback.TheprojectteamacknowledgesthecommentsreceivedfromtheMinistriesofFinanceofBrazil,CostaRica,theDominicanRepublic,Jamaica,Mexico,Peru,SaintKittsandNevisandUruguay,andtheRevenueagencyofMexico. Theauthorswouldalsoliketothankparticipantsinthe2023and2024meetingsoftheOECDExpertGroupontheEconomicsofPublicHealth(EGEPH),wherepreliminaryversionsofthereportwerepresented.AparticularthankyougoestorepresentativesfromtheMinistriesofHealthandotherparticipatinggovernmentalorganizationsfromBrazil,CostaRica,MexicoandtheUnitedStates,aswellasexpertsfromChile. ColleaguesKurtVanDender,DanielFichmannandStéphaneBuydensfromtheCTPA,andStefanoScarpetta,MarkPearson,FrancescaColombo,ChrisJamesandCarolinePennfromtheOECD’sDirectorateforEmployment,Labour,andSocialAffairsprovidedusefulcontributionsandcomments.TheauthorsaregratefultoHazelHealyandAntoniaVanzinifromtheCTPAfortheirassistancewitheditingandreportcommunicationandtoSahnurSoykanfororganisationalsupport.MeralGedikpreparedthereportforpublication. TheauthorswouldalsoliketothankcolleaguesfromthePanAmericanHealthOrganisation,theWorldBank,theWorldHealthOrganisation,theUniversityAdolfoIbáñezandJohnsHopkinsUniversityfortheirvaluablefeedback. ThereportwasapprovedbyWorkingPartyNo.2onTaxPolicyAnalysisandTaxStatisticsinitsInclusiveFrameworkformatinAugust2024.ThisreportwasalsoreviewedbytheHealthCommitteeanditsExpertGroupontheEconomicsofPublicHealth.ItispublishedundertheresponsibilityoftheSecretaryGeneraloftheOECD.Theopinionsexpressedandargum