Costa Rica : Overview of Tobacco Use, Tobacco Control Legislation, and Taxation

This brief provides an overview of tobacco control legislation, use, and taxation in the country. Costa Rica ratified the WHO Framework Convention on Tobacco Control in 2008. General Law for the Control of Tobacco and its Harmful Effects on Health...

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Main Author: World Bank Group
Format: Brief
Language:English
Published: World Bank, Washington, DC 2019
Subjects:
Online Access:http://documents.worldbank.org/curated/en/875941561129314789/Costa-Rica-Overview-of-Tobacco-Use-Tobacco-Control-Legislation-and-Taxation
http://hdl.handle.net/10986/31964
id okr-10986-31964
recordtype oai_dc
spelling okr-10986-319642021-05-25T09:25:22Z Costa Rica : Overview of Tobacco Use, Tobacco Control Legislation, and Taxation World Bank Group TOBACCO CONTROL LEGISLATION TOBACCO USE TOBACCO PRODUCTION TOBACCO TAX EXCISE TAX TAX REVENUE CIGARETTE PRICES CIGARETTE SMUGGLING This brief provides an overview of tobacco control legislation, use, and taxation in the country. Costa Rica ratified the WHO Framework Convention on Tobacco Control in 2008. General Law for the Control of Tobacco and its Harmful Effects on Health was adopted in March 2012, and it regulates smoke-free places; tobacco advertising, promotion, and sponsorship, as well as tobacco packaging and labeling in line with FCTC guidelines. This law also sets several norms on tobacco taxation, and it substantially increased the tax burden for cigarettes. In 2012, cigarette prices in Costa Rica increased by 49 percent, and in 2013, the tobacco excise revenue increased by 96 percent. Tobacco taxation and other tobacco control policies in Costa Rica were very successful in terms of public health. The prevalence of smoking both among adults and adolescents declined, and after 2012, the rates of decline increased. In 2015, only 5.8 percent of the adult population smoked daily. In 2018, cigarette production in the country was closed. The tobacco industry claimed that the closure had been caused by increased cigarette smuggling. However, there are no independent estimates of illicit cigarette share on the market, while the tobacco industry used to exaggerate the volumes of smuggled cigarettes. The difference in cigarette prices between Costa Rica and neighboring countries is rather small and is unable to encourage large smuggling. Thus, the observed illicit cigarette sales are likely caused by the factors, which are not related directly to tobacco taxation. 2019-06-25T19:43:48Z 2019-06-25T19:43:48Z 2019-06-21 Brief http://documents.worldbank.org/curated/en/875941561129314789/Costa-Rica-Overview-of-Tobacco-Use-Tobacco-Control-Legislation-and-Taxation http://hdl.handle.net/10986/31964 English WBG Global Tobacco Control Program; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Other Health Study Economic & Sector Work Latin America & Caribbean Costa Rica
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic TOBACCO CONTROL
LEGISLATION
TOBACCO USE
TOBACCO PRODUCTION
TOBACCO TAX
EXCISE TAX
TAX REVENUE
CIGARETTE PRICES
CIGARETTE SMUGGLING
spellingShingle TOBACCO CONTROL
LEGISLATION
TOBACCO USE
TOBACCO PRODUCTION
TOBACCO TAX
EXCISE TAX
TAX REVENUE
CIGARETTE PRICES
CIGARETTE SMUGGLING
World Bank Group
Costa Rica : Overview of Tobacco Use, Tobacco Control Legislation, and Taxation
geographic_facet Latin America & Caribbean
Costa Rica
relation WBG Global Tobacco Control Program;
description This brief provides an overview of tobacco control legislation, use, and taxation in the country. Costa Rica ratified the WHO Framework Convention on Tobacco Control in 2008. General Law for the Control of Tobacco and its Harmful Effects on Health was adopted in March 2012, and it regulates smoke-free places; tobacco advertising, promotion, and sponsorship, as well as tobacco packaging and labeling in line with FCTC guidelines. This law also sets several norms on tobacco taxation, and it substantially increased the tax burden for cigarettes. In 2012, cigarette prices in Costa Rica increased by 49 percent, and in 2013, the tobacco excise revenue increased by 96 percent. Tobacco taxation and other tobacco control policies in Costa Rica were very successful in terms of public health. The prevalence of smoking both among adults and adolescents declined, and after 2012, the rates of decline increased. In 2015, only 5.8 percent of the adult population smoked daily. In 2018, cigarette production in the country was closed. The tobacco industry claimed that the closure had been caused by increased cigarette smuggling. However, there are no independent estimates of illicit cigarette share on the market, while the tobacco industry used to exaggerate the volumes of smuggled cigarettes. The difference in cigarette prices between Costa Rica and neighboring countries is rather small and is unable to encourage large smuggling. Thus, the observed illicit cigarette sales are likely caused by the factors, which are not related directly to tobacco taxation.
format Brief
author World Bank Group
author_facet World Bank Group
author_sort World Bank Group
title Costa Rica : Overview of Tobacco Use, Tobacco Control Legislation, and Taxation
title_short Costa Rica : Overview of Tobacco Use, Tobacco Control Legislation, and Taxation
title_full Costa Rica : Overview of Tobacco Use, Tobacco Control Legislation, and Taxation
title_fullStr Costa Rica : Overview of Tobacco Use, Tobacco Control Legislation, and Taxation
title_full_unstemmed Costa Rica : Overview of Tobacco Use, Tobacco Control Legislation, and Taxation
title_sort costa rica : overview of tobacco use, tobacco control legislation, and taxation
publisher World Bank, Washington, DC
publishDate 2019
url http://documents.worldbank.org/curated/en/875941561129314789/Costa-Rica-Overview-of-Tobacco-Use-Tobacco-Control-Legislation-and-Taxation
http://hdl.handle.net/10986/31964
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