世界发展银行-Costa-Rica-_-Overview-of-Tobacco-Use,-Tobacco-Control-Legislation,-and-Taxation_23页_637kb

Costa Rica: Tobacco Use, Control Legislation, and Taxation Summary

Core Content Overview

Costa Rica has implemented comprehensive tobacco control measures and taxation policies, which have contributed to a significant decline in tobacco use among both adults and adolescents. The country ratified the WHO Framework Convention on Tobacco Control (FCTC) in 2008 and adopted the General Law for the Control of Tobacco and its Harmful Effects on Health in 2012, aligning with international tobacco control standards.

Main Legislation

• General Law for the Control of Tobacco and its Harmful Effects on Health (March 2012):
  This law regulates smoke-free places, tobacco advertising, promotion, and sponsorship, as well as tobacco packaging and labeling in line with FCTC guidelines. It also sets norms on tobacco taxation.

• Implementing Regulations:

  • Executive Decree No 37185 (2012): Regulates smoke-free places and tobacco advertising.
  • Executive Decree No 37778 - S (2012): Regulates tobacco product packaging and labeling.
  • Directives from the Ministry of Health (2013-2015): Established health warnings on tobacco packages, which are rotated to cover all packaging evenly.

• Tobacco Advertising Restrictions:
  Almost all tobacco advertising, promotion, and sponsorship are banned as of 2017. Three exemptions are allowed: adult-only venues, direct communication with vendors, and point-of-sale product display.

Tobacco Use Trends

• Adult Smoking Prevalence:

  • In 1986: 35% of men, 14% of women.
  • In 1988: 35% of men, 20% of women.
  • In 2015: 13.4% of men, 4.4% of women, and 8.9% overall.
  • Daily smokers: 5.8% of adults.
  • Overall decline in smoking rates observed between 1990 and 2015, with a notable drop of 2.9 percentage points between 2010 and 2015.

• Youth Smoking Prevalence:

  • In 1999: 20.8% of adolescents (13-15 years) used any tobacco product.
  • In 2013: 8.9% of adolescents used any tobacco product, with 5.0% smoking cigarettes.
  • Smoking susceptibility among youth also decreased significantly from 19.3% in 1999 to 12.4% in 2013.

Tobacco Production and Consumption

• Tobacco Production:

  • Raw tobacco production declined sharply from ~3,000 tons in the mid-1970s to 14 tons in 2016.
  • The country closed its cigarette production in 2018, which the tobacco industry attributed to smuggling, though independent evidence is lacking.

• Cigarette Consumption:

  • Per capita cigarette consumption among adults decreased from 1850 in 1970-72 to 1340 in 1990-92.
  • In 2015, total cigarette consumption was estimated at 1.3 billion cigarettes, with 1.22 billion being daily smokers.

• Market Dominance:

  • The market is dominated by PMI and BAT affiliates, with Tabacalera Costarricense (PMI) and BAT Centra America holding a 100% combined market share.

Tobacco Taxation and Revenue

• Taxation System:

  • The taxation system is a mix of ad valorem and specific excise taxes.
  • The specific excise tax is set at 20 colons per cigarette and is updated annually based on inflation.
  • The ad valorem tax (95%) is applied to the customs CIF value plus import duty, but its share of the final price is minimal (18-21%).

• Tax Revenue Trends:

  • In 2012, cigarette prices increased by 49%, and excise revenue increased by 96%.
  • From 2013-2017, excise revenue declined due to decreasing sales, despite minimal increases in tax rates.
  • In 2018, excise revenue slightly increased to 30.8 billion CRC.

• Tax Revenue by Type:

  • Specific excise revenue (2012-2018): Ranged from 19,852 million CRC in 2012 to 30,766 million CRC in 2018.
  • Consumption tax revenue (ad valorem): Declined in 2013 and remained low through 2016, but increased in 2017.

• Tax Earmarking and Affordability:

  • The tax system is criticized for being incomprehensive, as the minimum tax level does not effectively reduce affordability.
  • The specific excise rate increased by 7% between 2015 and 2018, but this did not lead to a significant increase in total tax burden or a meaningful reduction in affordability.

Key Findings and Recommendations

• Public Health Success:

  • Tobacco control policies and taxation have led to a decline in smoking prevalence among adults and youth.
  • The majority of adults (91%) are non-smokers and do not pay tobacco taxes.

• Industry Influence:

  • The tobacco industry has been accused of exaggerating smuggling and manipulating pricing to offset tax increases.
  • The pricing policy of the tobacco industry, not taxation, is a major factor in the decline of cigarette affordability and sales.

• Recommendations:

  • Transition to a specific excise system with a uniform rate for all cigarette brands.
  • Increase the specific excise rate annually to ensure a reduction in tobacco affordability.
  • Improve tobacco use surveillance and data collection to support more accurate policy analysis.
  • Ensure independent assessment of tax impacts to avoid industry bias.

Conclusion

Costa Rica has made substantial progress in tobacco control, but the current taxation system is complex and ineffective in reducing tobacco affordability and consumption. A more straightforward and uniform excise tax policy, combined with robust data collection and independent analysis, is recommended to enhance public health outcomes and increase government revenue.