What is the impact of a dedicated fund?

Read case studies from countries that have benefited from the establishment and use of a health promotion fund. 

  • Iceland
  • Panama
  • Philippines
  • Romania
  • Thailand
  • Vietnam
  • Proportion of dedicated tobacco tax funds in government’s health expenditures 

Country 

Year dedicated tobacco tax established

Funding source

Estimated annual total funds from dedicated tax

Annual funds from tobacco dedicated tax as percentage of general government expenditure on health (2013)

General government expenditure on health a percentage of GDP (2013)

Iceland

1972 

1977 (suspended) 

1985 (reintroduced) 

1996 (amended) 

2001 (amended) 

0.2% of gross tobacco sales value (1972) 

0.7% of gross tobacco sales value (1996) 

0.9% of gross tobacco sales value (2001) 

2014: ISK 108.3 million (USD 0.89 million) 

0.083% 

7.0% 

Panama

2009 

50% of selective consumption tax on cigarettes and other tobacco products 

The level of
the selective consumption tax was 32.5% of price declared by the wholesaler/ importer in 1995 and it was increased to 50% in September 2009 and 100% in November 2009 

2014: USD 27.8 million 

1.322% 

5.2% 

Philippines

1997 (RA 8240) and 2004 (RA 9334) 

Tobacco and alcohol excise tax reform in 2012 (RA 10351 or the “Sin Tax Reform Law of 2012”) 

More than 85% of incremental revenue
from excise 

on tobacco and alcohol products 

2014 incremental revenue: PHP 50.23 billion (USD 1.13 billion) 

Earmarked amount to the Department
of Health PHP 44.72 billion (USD 1.01 billion) 

Allocated amount for the Department of Health in 2014 PHP 30.49 billion (USD 0.69 billion) 

36.4%* 

1.4% 

Romania

2005 

Earmarked tax on tobacco and alcohol

10 €/1000 cigarettes,
10 €/1000 cigars, cigarillos and other tobacco products for smoking, 13 €/ kg of smoking tobacco 

2014: Lei 1.1 million (USD 0.33 million); 

14.4% of total health budget 

0.004% 

4.2% 

Thailand

2001

2% surcharge tax on tobacco and alcohol 

2014: THB 4064.74 million (USD 125.15 million)

1.78% of Ministry of Health budget and 1.84% of National Health Security Fund 

0.932% 

3.7% 

Vietnam

2012 

Compulsory contribution by tobacco manufacturers and importers to Vietnam Tobacco Control Fund:
1% of factory price effective from 1 May 2013, 

1.5% from 1 May 2016 and 

2% from 1 May 2019 

2014: VND 299.171 billion (USD 13.91 million) 0.5% of national health budget 

0.335% 

2.5% 

*Estimate for 2014 dividing allocation from the sin tax reform law by the total budget of the Department of Health in 2014. 

References

Main source:

World Health Organization, 2016. Earmarked tobacco taxes: lessons learnt from nine countries [online], Geneva, [Consulted on the 30.06.2021], https://www.who.int/publications/i/item/9789241515825

General government expenditure on health (except for Philippines, data for the budget of the Department of Health was directly provided by contacts in the Ministry of Finance):

Global Health Expenditure Database 2015. Geneva: World Health Organization; 2015 (http://www.who.int/health-accounts/ghed/en/).

GDP data:

World economic outlook 2015. Washington DC: International Monetary Fund (http:// www.imf.org/external/pubs/ft/weo/2015/01/). 

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