BACKGROUND: Tobacco consumption remains a significant public health and economic challenge in Argentina, where high poverty levels exacerbate its impact, particularly on vulnerable populations. The financial burden of tobacco use disproportionately affects lower-income households, deepening socioeconomic inequalities. This study applies an extended cost-effectiveness analysis to evaluate the impact of increasing tobacco taxes in Argentina, focusing on its implications for poverty and inequality.
METHODS: We conducted an extended cost-effectiveness analysis model to assess the impact of tobacco taxation on poverty, catastrophic health expenditures, and the additional tax revenues generated. This model was used by the Global Tobacco Economics Consortium (GTEC) in 14 middle-income countries. Model inputs were obtained through literature review, national surveys, civil registrations, and vital statistics.
RESULTS: The findings indicate that a 50% increase in tobacco prices through higher taxes in Argentina would prevent 18.000 individuals from falling into poverty, and protect 108.000 people from catastrophic health expenses, where 36% of these benefits accruing to the lowest income quintile. The poorest income group would gain 27% of the life years and 25% of the avoided costs, while contributing just 5% of the additional tax revenue. In contrast, the richest income group would gain 15% of the life years and 16% of the avoided costs, yet contribute 34% of the additional tax revenue. These results highlight the progressive nature of the intervention, which is projected to generate $209 million in additional tax revenue.
CONCLUSIONS: ese results underscore the progressive impact of increasing tobacco taxes as a public policy tool to reduce health and economic inequalities. By protecting vulnerable populations from poverty and catastrophic health expenditures while generating substantial revenue, this intervention not only improves health outcomes but also supports equitable fiscal policies.