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 | 2014: USD 27.8 million | 1.322% | 5.2% |
| and 100% in November 2009 | |||||
| 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/).