Towards a Healthy and Sustainable Economy: The Impact of Tobacco Taxes on Social Equity and Public Health in Mexico

Abstract

Context. This review analyzes recent studies (2019–2024) on the persistent public health crisis caused by smoking, especially in low- and middle-income countries such as Mexico, where poverty exacerbates its impact. Current health effects are examined according to the use of tax revenues, the impact of updating taxes with inflation, cessation rates, and variation in consumption with new socioeconomic evidence.

Problem. Tobacco use in Mexico remains inelastic, perpetuating health and economic burdens for low-income families and increased consumption among the wealthiest. This generates secondary poverty, where incomes fall below the poverty line after spending on tobacco.

Purpose. This study seeks to promote greater equity and sustainability in the country's public health system, providing evidence based on a multidisciplinary and innovative approach to strengthen fiscal policies on tobacco.

Methodology. Our primary objective was to analyze the effectiveness and implications of tobacco taxation policies between 2019 and 2024 due to fiscal policy changes in the current government. We conducted the literature search through PubMed, utilizing VosViewer software.

Theoretical and Practical Findings. In the theoretical field, it combines health economics, behavioral economics, and fiscal policy to analyze tax equity and impact on health. In practice, it provides evidence to design taxes that reduce consumption, increase incomes and improve public health, aligning with Sustainable Development Goals (SDGs) 3 (Good health and well-being) and 10 (Reduced inequalities).

Originality based on a multidisciplinary approach that promotes innovation for sustainable development. This work integrates health economics, behavioral economics, and fiscal policy, aligning with the guidelines of the Oslo Handbook on innovation in public policy. The combination of these approaches allows for a more comprehensive assessment of the economic and social impact of tobacco taxes, offering new tools for the formulation of effective and sustainable public policies.

Conclusions and limitations. This literature review provides a timely update for decision-making studies and offers relevant insights for academia and policymakers. The COVID-19 health crisis deprioritized the treatment of tobacco-related illnesses like lung cancer and acute myocardial infarction, among fifty other diseases, potentially affecting data from 2020–2021.