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Mexico approves very significant increase in tobacco tax PDF Print E-mail
Friday, 07 January 2011 20:11
The Mexican Congress ended discussions that lasted nearly a year when it approved a tax increase of seven pesos for all tobacco products on 26 October, 2010. Cigarettes cost from 19 to 24 pesos a pack prior to the increase, so the introduction of the tax raises the prices by up to 37%. Higher taxes have been proven to be one of the most effective ways to reduce tobacco consumption.

The National Office for Tobacco Control, funded by The Union through a Bloomberg Initiative grant, and members of the Senate took the lead in the campaign advocating for higher cigarette taxes. Civil society organisations have also been very active in supporting the initiative and putting pressure on members of congress to raise the price of cigarettes through taxation.

Revenues from the new taxes are expected to provide resources for treating tobacco-related diseases and will narrow the gap between the revenue collected from taxes and the high cost of these diseases to the public health care system.  Treating smoke-related illnesses cost 75.2 billion pesos (US $5.7 billion) in 2008.  

The Union Mexico Office has made increased taxation a priority of its tobacco control activities and continues to provide technical assistance on this and other effective interventions.

This passing of this legislation demonstrates the strength of the collaboration between national and international partners such as the Inter-American Heart Foundation, the Pan-American Health Organization, the Campaign for Tobacco-Free Kids, the National Institute of Public Health, World Lung Foundation, and The Union.