The potential global gains in health and revenue from increased taxation of tobacco, alcohol and sugar-sweetened beverages: a modelling analysis

Introduction Globally, a growing burden of morbidity and mortality is attributable to lifestyle behaviours, and in particular to the consumption of tobacco, alcohol and sugar-sweetened beverages (SSB). In low-income and middle-income countries, this increased disease burden falls on already encumber...

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Main Authors: Frank J Chaloupka, Ramanan Laxminarayan, Nicholas Stacey, Amit Summan, Johanna Birckmayer, Evan Blecher
Format: Article
Language:English
Published: BMJ Publishing Group 2020-03-01
Series:BMJ Global Health
Online Access:https://gh.bmj.com/content/5/3/e002143.full
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author Frank J Chaloupka
Ramanan Laxminarayan
Nicholas Stacey
Amit Summan
Johanna Birckmayer
Evan Blecher
author_facet Frank J Chaloupka
Ramanan Laxminarayan
Nicholas Stacey
Amit Summan
Johanna Birckmayer
Evan Blecher
author_sort Frank J Chaloupka
collection DOAJ
description Introduction Globally, a growing burden of morbidity and mortality is attributable to lifestyle behaviours, and in particular to the consumption of tobacco, alcohol and sugar-sweetened beverages (SSB). In low-income and middle-income countries, this increased disease burden falls on already encumbered and resource-constrained healthcare systems. Fiscal policies, specifically taxation, can lower consumption of tobacco, alcohol and SSB while raising government revenues.Methods We simulated the health and economic effects of taxing cigarettes, alcohol and SSB over 50 years for 30–79 years old populations using separate mathematical models for each commodity that incorporated country-level epidemiological, demographic and consumption data. Based on data availability, national-level health effects of higher tobacco, alcohol and SSB taxes were simulated in 141, 166 and 176 countries, respectively, which represented 92%, 97% and 95% of the global population, respectively. Economic effects for tobacco, alcohol and SSB were estimated for countries representing 91%, 43% and 83% of the global population, respectively. These estimates were extrapolated to the global level by matching countries according to income level.Results Over 50 years, taxes that raise the retail price of tobacco, alcoholic beverages and SSB by 20% could result in a global gain of 160.7 million (95% uncertainty interval (UI): 96.3 to 225.2 million), 227.4 million (UI: 161.2 to 293.6 million) and 24.3 million (UI: 15.7 to 35.4 million) additional life years, respectively.Conclusion Excise tax increases on tobacco, alcohol and SSB can produce substantial health gains by reducing premature mortality while raising government revenues, which could be used to increase public health funding.
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spelling doaj-art-6bc274681b6f40baa098c71f830092c52024-12-11T23:35:09ZengBMJ Publishing GroupBMJ Global Health2059-79082020-03-015310.1136/bmjgh-2019-002143The potential global gains in health and revenue from increased taxation of tobacco, alcohol and sugar-sweetened beverages: a modelling analysisFrank J Chaloupka0Ramanan Laxminarayan1Nicholas Stacey2Amit Summan3Johanna Birckmayer4Evan Blecher54 Department of Economics, Institute for Health Research and Policy, University of Illinois, Chicago, Illinois, USACenter for Disease Dynamics, Economics & Policy, Washington, District of Columbia, USASA MRC/ Wits Centre for Health Economics and Decision Science, University of Witwatersrand School of Public Health, Faculty of Health Sciences, Johannesburg, South AfricaOne Health Trust, Washington, Washington, USABloomberg Philanthropies, New York, New York, USAHealth Policy Center, University of Illinois at Chicago, Chicago, Illinois, USAIntroduction Globally, a growing burden of morbidity and mortality is attributable to lifestyle behaviours, and in particular to the consumption of tobacco, alcohol and sugar-sweetened beverages (SSB). In low-income and middle-income countries, this increased disease burden falls on already encumbered and resource-constrained healthcare systems. Fiscal policies, specifically taxation, can lower consumption of tobacco, alcohol and SSB while raising government revenues.Methods We simulated the health and economic effects of taxing cigarettes, alcohol and SSB over 50 years for 30–79 years old populations using separate mathematical models for each commodity that incorporated country-level epidemiological, demographic and consumption data. Based on data availability, national-level health effects of higher tobacco, alcohol and SSB taxes were simulated in 141, 166 and 176 countries, respectively, which represented 92%, 97% and 95% of the global population, respectively. Economic effects for tobacco, alcohol and SSB were estimated for countries representing 91%, 43% and 83% of the global population, respectively. These estimates were extrapolated to the global level by matching countries according to income level.Results Over 50 years, taxes that raise the retail price of tobacco, alcoholic beverages and SSB by 20% could result in a global gain of 160.7 million (95% uncertainty interval (UI): 96.3 to 225.2 million), 227.4 million (UI: 161.2 to 293.6 million) and 24.3 million (UI: 15.7 to 35.4 million) additional life years, respectively.Conclusion Excise tax increases on tobacco, alcohol and SSB can produce substantial health gains by reducing premature mortality while raising government revenues, which could be used to increase public health funding.https://gh.bmj.com/content/5/3/e002143.full
spellingShingle Frank J Chaloupka
Ramanan Laxminarayan
Nicholas Stacey
Amit Summan
Johanna Birckmayer
Evan Blecher
The potential global gains in health and revenue from increased taxation of tobacco, alcohol and sugar-sweetened beverages: a modelling analysis
BMJ Global Health
title The potential global gains in health and revenue from increased taxation of tobacco, alcohol and sugar-sweetened beverages: a modelling analysis
title_full The potential global gains in health and revenue from increased taxation of tobacco, alcohol and sugar-sweetened beverages: a modelling analysis
title_fullStr The potential global gains in health and revenue from increased taxation of tobacco, alcohol and sugar-sweetened beverages: a modelling analysis
title_full_unstemmed The potential global gains in health and revenue from increased taxation of tobacco, alcohol and sugar-sweetened beverages: a modelling analysis
title_short The potential global gains in health and revenue from increased taxation of tobacco, alcohol and sugar-sweetened beverages: a modelling analysis
title_sort potential global gains in health and revenue from increased taxation of tobacco alcohol and sugar sweetened beverages a modelling analysis
url https://gh.bmj.com/content/5/3/e002143.full
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