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A REVIEW OF EXCISE TAXES ON CIGARETTES IN MAURITIUS

Introduction
This report presents the results of a simulation model that predicts how an increase in the specific excise tax on cigarettes in Mauritius would influence, amongst other things, the retail price, the total consumption of cigarettes and government revenues. The focus of the model is on improving health outcomes and raising additional government revenue in Mauritius.

Mauritius’s past experience has shown that increasing the excise tax on tobacco has been particularly effective at raising government revenues and reducing tobacco consumption. Nevertheless, tobacco consumption is still high in the country, with a smoking prevalence of 38.5% among males and 4.1% among females in 2016. Affordability incorporates the impact of both price and income as determinants of demand. The successive excise tax increases since 2012 have made cigarettes in Mauritius progressively less affordable. Nevertheless, cigarettes in Mauritius are more affordable than in many other African countries.
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