The Political Economy of the 2016 Tobacco and Proposed Sugar-Sweetened Beverage Tax Increases in Colombia

In 2008, Colombia joined the Framework Convention on Tobacco Control (FCTC), which includes measures related to price and taxes designed to reduce supply and demand. By 2015, the overall prevalence of smokers in the country had decreased slightly but still reached 17 percent. The impact of tobacco o...

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Main Authors: Garcia, Maria Isabel, Villar Uribe, Manuela, Iunes, Roberto
Format: Report
Language:English
Published: World Bank, Washington, DC 2017
Subjects:
Online Access:http://documents.worldbank.org/curated/en/157441507059518543/The-political-economy-of-the-2016-tobacco-and-proposed-sugar-sweetened-beverage-tax-increases-in-Colombia
http://hdl.handle.net/10986/28569
id okr-10986-28569
recordtype oai_dc
spelling okr-10986-285692021-05-25T09:04:45Z The Political Economy of the 2016 Tobacco and Proposed Sugar-Sweetened Beverage Tax Increases in Colombia Garcia, Maria Isabel Villar Uribe, Manuela Iunes, Roberto SMUGGLING SIN TAX DEATH TAX TOBACCO CONTROL BEVERAGES SUGAR CONSUMPTION In 2008, Colombia joined the Framework Convention on Tobacco Control (FCTC), which includes measures related to price and taxes designed to reduce supply and demand. By 2015, the overall prevalence of smokers in the country had decreased slightly but still reached 17 percent. The impact of tobacco on the mortality and quality of life of Colombians was estimated as a direct loss of more than 600,000 years of life and more than 26,000 deaths each year. The price of cigarettes in Colombia in 2015 was so low (approximately 2 US dollars per pack of 20 cigarettes), that it was higher than just one other country in Latin America and in the Caribbean. At the time, Colombia was contending with shrinking oil revenue (owing to a sharp drop in oil prices) and constantly rising public expenditure. In the health sector cost pressures stemmed, among other factors, from a change in the government's responsibility for health coverage in the subsidized system that covers the cost of health services for the country's lowest population segments. It was in this context that the government in early 2015 created a committee of experts responsible for proposing changes in the country's tax structure. This document describes the course of events that led to the phased adjustment of the tobacco tax approved by Congress in December 2016, with a view to aligning the price of cigarettes in Colombia with the Latin American average. Despite the failed attempt to introduce a tax on sugar-sweetened beverages, the discussion was framed and will most likely be renewed in the future. 2017-10-25T17:11:55Z 2017-10-25T17:11:55Z 2017-09 Report http://documents.worldbank.org/curated/en/157441507059518543/The-political-economy-of-the-2016-tobacco-and-proposed-sugar-sweetened-beverage-tax-increases-in-Colombia http://hdl.handle.net/10986/28569 English CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Other Public Sector Study Economic & Sector Work Latin America & Caribbean Colombia
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic SMUGGLING
SIN TAX
DEATH TAX
TOBACCO CONTROL
BEVERAGES
SUGAR CONSUMPTION
spellingShingle SMUGGLING
SIN TAX
DEATH TAX
TOBACCO CONTROL
BEVERAGES
SUGAR CONSUMPTION
Garcia, Maria Isabel
Villar Uribe, Manuela
Iunes, Roberto
The Political Economy of the 2016 Tobacco and Proposed Sugar-Sweetened Beverage Tax Increases in Colombia
geographic_facet Latin America & Caribbean
Colombia
description In 2008, Colombia joined the Framework Convention on Tobacco Control (FCTC), which includes measures related to price and taxes designed to reduce supply and demand. By 2015, the overall prevalence of smokers in the country had decreased slightly but still reached 17 percent. The impact of tobacco on the mortality and quality of life of Colombians was estimated as a direct loss of more than 600,000 years of life and more than 26,000 deaths each year. The price of cigarettes in Colombia in 2015 was so low (approximately 2 US dollars per pack of 20 cigarettes), that it was higher than just one other country in Latin America and in the Caribbean. At the time, Colombia was contending with shrinking oil revenue (owing to a sharp drop in oil prices) and constantly rising public expenditure. In the health sector cost pressures stemmed, among other factors, from a change in the government's responsibility for health coverage in the subsidized system that covers the cost of health services for the country's lowest population segments. It was in this context that the government in early 2015 created a committee of experts responsible for proposing changes in the country's tax structure. This document describes the course of events that led to the phased adjustment of the tobacco tax approved by Congress in December 2016, with a view to aligning the price of cigarettes in Colombia with the Latin American average. Despite the failed attempt to introduce a tax on sugar-sweetened beverages, the discussion was framed and will most likely be renewed in the future.
format Report
author Garcia, Maria Isabel
Villar Uribe, Manuela
Iunes, Roberto
author_facet Garcia, Maria Isabel
Villar Uribe, Manuela
Iunes, Roberto
author_sort Garcia, Maria Isabel
title The Political Economy of the 2016 Tobacco and Proposed Sugar-Sweetened Beverage Tax Increases in Colombia
title_short The Political Economy of the 2016 Tobacco and Proposed Sugar-Sweetened Beverage Tax Increases in Colombia
title_full The Political Economy of the 2016 Tobacco and Proposed Sugar-Sweetened Beverage Tax Increases in Colombia
title_fullStr The Political Economy of the 2016 Tobacco and Proposed Sugar-Sweetened Beverage Tax Increases in Colombia
title_full_unstemmed The Political Economy of the 2016 Tobacco and Proposed Sugar-Sweetened Beverage Tax Increases in Colombia
title_sort political economy of the 2016 tobacco and proposed sugar-sweetened beverage tax increases in colombia
publisher World Bank, Washington, DC
publishDate 2017
url http://documents.worldbank.org/curated/en/157441507059518543/The-political-economy-of-the-2016-tobacco-and-proposed-sugar-sweetened-beverage-tax-increases-in-Colombia
http://hdl.handle.net/10986/28569
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