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Artificial intelligence
How to apply effective governance to harness the benefits of A.I. and
mitigate its risks
Climate mitigation and net-zero transition
Analysis and insights for driving a rapid transition to net-zero while
building resilience to physical climate impacts
Development co-operation
Standards and guidelines for development co-operation with concrete examples
of their implementation
Gender equality
Policies on gender equality a driver of economic growth, democracy and social
cohesion
Global value and supply chains
As the trend towards the international dispersion of certain value chain
activities produces challenges, discover policies to meet these
Tax transparency and international co-operation
Enhanced transparency and exchange of information to put an end to bank
secrecy and fight tax evasion and avoidance
AGRICULTURE AND FISHERIES
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Artificial intelligence
How to apply effective governance to harness the benefits of A.I. and
mitigate its risks
Climate mitigation and net-zero transition
Analysis and insights for driving a rapid transition to net-zero while
building resilience to physical climate impacts
Development co-operation
Standards and guidelines for development co-operation with concrete examples
of their implementation
Gender equality
Policies on gender equality a driver of economic growth, democracy and social
cohesion
Global value and supply chains
As the trend towards the international dispersion of certain value chain
activities produces challenges, discover policies to meet these
Tax transparency and international co-operation
Enhanced transparency and exchange of information to put an end to bank
secrecy and fight tax evasion and avoidance
AGRICULTURE AND FISHERIES
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CLIMATE CHANGE
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Base erosion and profit shifting (BEPS)
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Explore taxation
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COUNTRIES S - T
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Artificial intelligence
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Climate mitigation and net-zero transition
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Gender equality
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cohesion
Global value and supply chains
As the trend towards the international dispersion of certain value chain
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Tax transparency and international co-operation
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secrecy and fight tax evasion and avoidance
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Artificial intelligence
How to apply effective governance to harness the benefits of A.I. and
mitigate its risks
Climate mitigation and net-zero transition
Analysis and insights for driving a rapid transition to net-zero while
building resilience to physical climate impacts
Development co-operation
Standards and guidelines for development co-operation with concrete examples
of their implementation
Gender equality
Policies on gender equality a driver of economic growth, democracy and social
cohesion
Global value and supply chains
As the trend towards the international dispersion of certain value chain
activities produces challenges, discover policies to meet these
Tax transparency and international co-operation
Enhanced transparency and exchange of information to put an end to bank
secrecy and fight tax evasion and avoidance
AGRICULTURE AND FISHERIES
Agricultural policy monitoring
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Base erosion and profit shifting (BEPS)
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WELL-BEING OECD launches How’s Life? report and Digital Well-being Hub
How’s Life? 2024 is the OECD’s flagship publication on the state of well-being
for people, the planet, and future generations. A new OECD Digital Well-being
Hub also provides evidence on the complex relationship between digital
technologies and individual well-being.
Learn more
Press release
5 November 2024
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OECD kicks off accession process with Thailand
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Tobacco taxation reforms are needed to reduce tobacco use in Latin America and
the Caribbean
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OECD Guidelines on Corporate Governance of State-Owned Enterprises 2024
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DATA INSIGHTS
Explore all data insights
Indirect taxes from cigarettes
% of the retail price of the most sold brand of cigarettes
Chart
Combination chart with 2 data series.
View as data table, Chart
The chart has 1 X axis displaying categories.
The chart has 1 Y axis displaying values. Data ranges from 10 to 81.54345995.
Created with Highcharts 11.4.8WHO
recommendation20122022020406080CubaParaguayGuyanaBoliviaDominican RepublicLAC
averageGuatemalaCosta RicaColombiaMexicoArgentinaBrazilChile
*
*
End of interactive chart.
Total indirect taxes include excise taxes, VAT, import duties, and any other
indirect taxes. The most sold brand of cigarettes is determined based on
national market share information and varies across countries.
LAC average: Antigua and Barbuda, Argentina, Bahamas, Barbados, Belize, Bolivia,
Brazil, Chile, Colombia, Costa Rica, Cuba, Dominica, Dominican Republic,
Ecuador, El Salvador, Grenada, Guatemala, Guyana, Haiti, Honduras, Jamaica,
Mexico, Nicaragua, Panama, Paraguay, Peru, Saint Kitts and Nevis, Saint Lucia,
Saint Vincent and the Grenadines, Suriname, Trinidad and Tobago, Uruguay,
Venezuela.
Source: OECD (2024), Tobacco Taxation in Latin America and the Caribbean
TOBACCO TAXATION IN LATIN AMERICA AND THE CARIBBEAN: SIGNIFICANT SCOPE FOR
IMPROVEMENT REMAINS
While countries in Latin America and the Caribbean (LAC) have gradually, albeit
partially, aligned their tobacco tax policy with the World Health Organization
(WHO) best practices, progress on tobacco excise tax reform has stagnated since
2012 and significant scope for improvement remains.
Cigarettes, which are the most widely consumed tobacco product in the region,
are in general highly affordable and have become more so over time. Effective
tax rates on cigarettes remain below the WHO’s recommended tax rate of at least
75% of the retail price of tobacco. In the short run, a tobacco tax increase
will tend to have a positive impact on tobacco tax revenue, even if tobacco use
would decrease, because smokers tend to adjust their smoking behaviour slowly
over time. In the longer run, the reduction in health, economic and social costs
would outweigh the drop in tax revenue, thereby resulting in a positive impact
for the government budget and improved health outcomes.
To improve the effectiveness of tobacco tax policy and administration, the
report recommends that LAC countries increase tobacco excise tax rates, seek to
account for the strategic responses of the tobacco industry when designing
tobacco tax policy, strengthen tobacco tax administration, introduce
accompanying measures to tackle illicit tobacco trade, ensure that tobacco
excise and income tax policies are coherent, and strengthen domestic and
regional tobacco tax co-operation.
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