Revenue Potential of Tobacco Tax in Suriname

This One-Pager was written by Economics for Health. The one-pager assesses the revenue potential of higher tobacco taxes and stronger tax administration and enforcement in Suriname. Tobacco taxes only account for 32% of the retail price, which is substantially below the 75% recommended minimum established by the WHO. The researchers find that the country could more than triple the selective tax from the current USD 66 to 200 per 1,000 sticks, and continue to see increases in the revenue. Estimates also suggest that three out of every four cigarettes is currently illicit. Thus, full compliance, which can be achieved by strengthening control of the tobacco value chain, would further increase tax revenues by between USD 740 million and 1 billion each year. The one-pager concludes with recommendations to implement best practices in tobacco taxation to reduce raise tax revenues, in addition to reducing consumption and the economic harms of tobacco use.