Costa Rica Ministry of Health opposes tobacco tax reduction bill

The Costa Rican Ministry of Health has expressed opposition to the current wording of Bill 25.668, known as the Law for Fiscal Efficiency and Combat Against Tobacco Contraband. Health Minister Dr. Alexander Sánchez Cabo warned that the proposal could reduce the tax burden on cigarettes, making them more affordable and potentially increasing consumption, particularly among young people.

The Ministry noted that the bill proposes replacing the current specific tax of ₡26.19 per unit with a rate of “up to twenty colones” per unit. This would represent a reduction of approximately 23.6% in that tax component. Additionally, the Ministry expressed concern that eliminating the minimum taxation level could facilitate the sale of lower-priced tobacco products and impact resources allocated to public institutions.

The National Anti-Tobacco Network (RENATA) has backed the Ministry's position, arguing that combating contraband should not involve weakening tax instruments used to reduce tobacco use. The Ministry further stated that there is no evidence proving that a tax reduction is necessary or sufficient to decrease illicit trade.