Taxation policy impact on tobacco sales in Argentina
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Centro de Estudios de Estado y Sociedad (CEDES), Argentina
Publication date: 2018-03-01
Tob. Induc. Dis. 2018;16(Suppl 1):A120
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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.

Official data from the Ministry of Agriculture on cigarettes sales was analyzed. Trends from 2006 to 2017 were considered for the analysis.

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.

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.

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