Mexico Reaps Revenue Gains from Tobacco Tax
Windfall disproves industry claims on lost revenues
Editor
Nov 15, 2011
Mexico saw a surge in tobacco tax revenues from January through September 2011, according to the finance ministry — the result of a 2010 hike in tobacco taxes that industry opponents had claimed would increase smuggling and lose revenue.
Instead, Mexico's finance minister said the historic increase in cigarette taxes, which raised the tax per cigarette pack by seven pesos, boosted revenues by 9 percent after adjusting for inflation.
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