PAHO: Taxing tobacco does not increase smuggling!

By: Staff Writer

August 23, 2022

The Pan-American Health Organisation (PAHO) said that smuggling of tobacco does not increase with the implementation of higher taxes contrary to popular belief.

Anselm Hennis, director of the department of non-communicable disease and mental health PAHO, said at the launch of the report on Tobacco Control for the Region of the Americas 2022 that: “Tobacco remains the only legal consumer product that kills up to half of those who use it as intended by the manufacturers, accounting for more than 8m deaths annually, of which 7m of those deaths are the result of direct use, while around 1.2m deaths are the result of non-smokers being exposed to second hand tobacco smoke.”

Anselm Hennis

The report itself mapped the control of tobacco across the region. Mr Hennis also said: “It is important to highlight that the region of the Americas records the highest number of countries implementing smoke free environments at the highest level of application when compared to other who regions of note.”

He added, however: “We’re facing even more issues that must be urgently addressed in an effort to strengthen tobacco control, both regionally and globally. This includes the uptick in the availability of novel and emerging tobacco and nicotine products…”

The report said: “Smokeless tobacco use is most prevalent among youth in the Caribbean. In general, boys use more smokeless tobacco than girls, although the numbers for boys and girls are similar in some countries such as Belize, Bolivia, Jamaica, Peru and Panama.”

The report also advocated for raising the taxes on tobacco as a policy to curb use. The progress of tobacco tax policies is facilitated by the extensive worldwide literature showing that policies aimed at increasing prices through raising taxes will reduce tobacco consumption.

A systematic review of the impact of tobacco price and tax measures in Latin America and the Caribbean has found that a negative, significant and robust link exists between the price of cigarettes and their consumption

The report also noted that higher taxes on tobacco not only curb consumption, but also takes the burden off of the health system caused by people who do use tobacco. It said: “Another factor in support of tax policies was the adoption in 2014 by the FCTC (Framework Convention on Tobacco Control) Parties of the guidelines for the implementation of Article 6 . These highlight the fact that tobacco use generates a substantial economic burden for society in general: ‘Higher direct health costs associated with tobacco-related disease, and higher indirect costs associated with premature loss of life, disability due to tobacco-related disease and productivity losses, create significant negative externalities of tobacco use.’ The guidelines emphasize that the taxes not only limit these externalities through the reduction of prevalence and consumption, but also help cover public health costs arising from tobacco use.”

Despite the push for high taxes, some may argue that this may lead to a black market for smuggling tobacco, however PAHO dismissed this as “no evidence” supports that claim.

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