Tobacco Taxation in Latin America and the Caribbean

A CALL FOR TOBACCO TAX REFORM Tobacco Taxation in LatinAmerica and the Caribbean A CALL FOR TOBACCO TAX REFORM This work is published under the responsibility of the Secretary-General of the OECD. The opinions expressed andarguments employed herein do not necessarily reflect the official views of the Member countries of the OECD. This document, as well as any data and map included herein, are without prejudice to the status of or sovereignty overany territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. ISBN 978-92-64-72396-2 (print)ISBN 978-92-64-55030-8 (PDF)ISBN 978-92-64-36824-8 (HTML)ISBN 978-92-64-82671-7 (epub) Photo credits:Cover design by Baseline Arts Ltd using images from © Africa Studio/Shutterstock.com. Corrigenda to OECD publications may be found at: https://www.oecd.org/en/publications/support/corrigenda.html.© OECD 2024 Attribution 4.0 International (CC BY 4.0)This work is made available under the Creative Commons Attribution 4.0 International licence. By using this work, you accept to be bound by the terms of this licence(https://creativecommons.org/licenses/by/4.0/).Attribution– you must cite the work.Translations– you must cite the original work, identify changes to the original and add the following text:In the event of any discrepancy between the original work and thetranslation, only the text of original work should be considered valid.Adaptations– you must cite the original work and add the following text:This is an adaptation of an original work by the OECD. The opinions expressed and arguments employed inthis adaptation should not be reported as representing the official views of the OECD or of its Member countries.Third-party material– the licence does not apply to third-party material in the work. If using such material, you are responsible for obtaining permission from the third party and forany claims of infringement.You must not use the OECD logo, visual identity or cover image without express permission or suggest the OECD endorses your use of the work.Any dispute arising under this licence shall be settled by arbitration in accordance with the Permanent Court of Arbitration (PCA) Arbitration Rules 2012. The seat of arbitration shallbe Paris (France). The number of arbitrators shall be one. Foreword TheOrganisation for Economic Co-operation and Development (OECD) hasundertakena project ontobacco taxation in the Latin America and the Caribbean (LAC) region with the financial support ofBloomberg Philanthropies. The projectsought to identify ways ofimprovingthe effectiveness of tobaccotaxation and stimulatingdialogue on tobacco taxation policy between Finance and Health Ministries in theLAC region. The projectwascarried out by the OECD’s Centre for Tax Policy and Administration(CTPA)in tandemwith the OECD’s Directorate for Employment, Labour, and Social Affairs.Deliverablesincludea report on tobacco taxation in the LAC region, a regional workshop on tobacco taxation, and technicalsupporton tobacco taxationfor countries in LAC. Thereport, one of the project outputs,was produced by the Tax Policy and Statistics Division of the CTPA.Within the CTPA, thework on thereport was led by Bert Brys andauthored by, in alphabetical order,BertBrys,Jean-Baptiste Carpentier, Céline Colin,Caroline Maschka and Mariona MasMontserrat. The Health Division of the OECD’s Directorate for Employment, Labour, and Social Affairs providedsignificant input.Their inputswereled by Michele Cecchini and written by Alexa Segal, with contributionsfrom Aliénor Lerouge, Fabien Lenthy,Marion Devaux, and Sabine Vuik. The authors would like to thank the delegates of Working Party No.2 on Tax Policy Analysis and TaxStatisticsin its Inclusive Framework formatfor their inputsand feedback.The project team acknowledgesthe comments received fromthe Ministries of Finance of Brazil, Costa Rica, the Dominican Republic,Jamaica, Mexico, Peru, Saint Kitts and Nevisand Uruguay, and the Revenue agency of Mexico. The authors would also like to thank participants in the 2023 and 2024 meetings of the OECD Expert Groupon the Economics of Public Health (EGEPH), where preliminary versions of the report were presented. Aparticular thank you goes to representatives from the Ministries of Health and other participating governmentalorganizations from Brazil, Costa Rica, Mexico and the United States, as well as experts from Chile. Colleagues Kurt Van Dender, Daniel Fichmann and Stéphane Buydens from the CTPA, andStefanoScarpetta, Mark Pearson, Francesca Colombo,Chris James and Caroline Penn from the OECD’sDirectorate for Employment, Labour, and Social Affairsprovided useful contributions and comments. Theauthors are grateful to Hazel Healy and Antonia Vanzini from the CTPA for their assistance with editingand report communicationand to Sahnur Soykan for organisational support.Meral Gedik prepared thereport for publication. The authors would also like to thank col