Raising tobacco tax in Peru aims to curb smoking, says health minister

Peru's new 10-percent tax hike on cigarettes aims to reduce smoking, Health Minister Anibal Velasquez said Friday.

The hike, announced Thursday, is designed to lessen the incidence of smoking, especially among the young people in Peru, where an average of 16,000 people a year die of smoking-related diseases, state daily Andina said on Friday.

According to the ministry's general director of Health Promotion, Carlos Ayestas, studies show that a 10-percent tax hike on tobacco tends to lead to an eight-percent decrease in smoking in low-and medium-income countries, the daily said.

Other countries in Latin America, such as Brazil and Mexico, have seen a drop in smoking after raising taxes on cigarettes, said Andina.

The after-tax price of a 20-cigarrette pack of Marlboros sold at 2.50 U.S. dollars in Peru in 2014, according to the website cigaretteprices.net.

In continental South America, the website reports, prices range from as low as 1.30 dollars in Paraguay to 4.70 dollars in Venezuela.

The United States and Europe have some of the highest prices, with a pack selling for over 12 dollars in New York state and more than 15 dollars in Norway. Endit