Development of a New Tobacco Tax Policy in Peru

The most direct and effective method for reducing tobacco consumption is to increase the price of tobacco products through legislating higher taxes. Raising tobacco prices promotes cessation, stops potential users from starting, and reduces tobacco usage among those who continue to consume it. The World Health Organization's Framework Convention on Tobacco Control recognizes these key outcomes and urges signatories to consider tax and pricing policies as part of their comprehensive national health policies. This research project aims to design an evidence-based proposal for more effective tobacco tax legislation in Peru.

The project will focus on gathering and analyzing data on existing household consumption and expenditure surveys. It will examine tax and constitutional legislation, other tax authority controls, and primary and secondary data on the market for tobacco products. Researchers will also study the tobacco supply chain, customs seizures, and trends in illicit trade. The project's aim is to provide a comprehensive domestic base for a new fiscal policy on cigarettes and other tobacco products in Peru.

Primary sources of data will include household surveys, data from earlier studies, marketing analyses, and previous reports. Data from Peru's Statistics Government Office will offer insight into smoking trends among key demographic groups.

The project will help define and promote a long-term fiscal policy for tobacco products. The emphasis will be on tax and price increases, along with tax evasion controls, to increase revenues and decrease consumption. The proposed policy design will permit periodic tax base adjustments to address inflation and rising affordability. It will also assess the feasibility of using a portion of tobacco taxes for tobacco control programs.

Project ID

106833

Project status

Closed

Start Date

Friday, December 28, 2012

End Date

Saturday, December 27, 2014

Duration

18 months

IDRC Officer

Sanchez-Bain, Walter Andres

Total funding

CA$ 149,600

Countries

Peru, South America, North and Central America

Program

Food, Environment, and Health

Project Leader

Hugo Córdova

Project Leader

Carlos E. Farías Alburqueque

Institution

Comision Nacional Permanente de Lucha Antitabaquica

Institution Country

Peru

Institution Website

http://WWW.COLAT.PE