New Study Shows Tobacco Tax Hikes Could Save Thousands, Double Revenues

In a major push for public health reform, the World Health Organization (WHO), in collaboration with VISA NGO and the University of Cape Town (UCT), has conducted an in-depth study on the impact of increasing health taxes in Mauritius. The findings highlight the potential life-saving and fiscal benefits of sustained increases in tobacco taxes—a measure shown globally to be among the most effective ways to reduce noncommunicable diseases (NCDs).

Using a dynamic simulation tool developed by UCT’s Research Unit on the Economics of Excisable Products, the study evaluated how different tax policy scenarios could shape future health and economic outcomes in Mauritius by 2029.

Modelling Two Scenarios: 15% vs. 25% Tax Hike

The study analyzed two policy options for annual increases in excise taxes on cigarettes—a 15% rise and a more aggressive 25% rise. The results reveal that both approaches could yield significant public health and revenue gains, with more ambitious increases generating outsized benefits:

15% Annual Increase:

• Excise revenue up by 55%

• Smoking prevalence down from 18.1% to 17.4%

• 11,600 premature deaths prevented by 2029

25% Annual Increase:

• Excise revenue could double

• Smoking prevalence drops to 16.3%

• 19,300 lives saved over the same period

These findings were presented on 20 June 2025 during a high-level meeting convened by WHO, involving representatives from the Mauritian Ministries of Health and Finance, WHO tax experts, and UCT researchers.

Beyond Tobacco: Taxes on Sugar, Alcohol Also Commended

The WHO and VISA also welcomed the Mauritian government’s recent tax policy decisions aimed at curbing the NCD crisis. In a significant policy shift:

• Tobacco and alcohol taxes were increased by 10%

• Sugary drink taxes surged by 100%

• New taxes were introduced on chocolate, ice cream, and other high-sugar products

“This is a gift to public health,” said Dr. Anne Ancia, WHO Representative in Mauritius. “Higher prices on unhealthy products reduce consumption—especially in a country where obesity, diabetes, and cardiovascular diseases are leading causes of death and disability.”

Need for Stronger Enforcement of Tobacco Law 2022

While the new tax policies mark progress, WHO also called on the government to enforce the Tobacco Law 2022 more rigorously, particularly provisions banning the sale of single cigarettes—a practice that allows youth and low-income users to continue smoking despite price hikes.

“Without strict enforcement, single-stick sales undermine the very price signals that taxes are meant to send,” warned Dr. Ancia.

Multisectoral Support for Health Taxes Grows

The findings were previously presented on 26 May 2025 to a broad coalition of stakeholders, including:

• The Mauritius Revenue Authority

• The Ministries of Education and Youth

• The University of Mauritius

• Local NGOs, consumer groups, and health advocates

This engagement reflects growing cross-sectoral consensus around the need to reform health tax policy as a tool not only for public health but also for fiscal sustainability and economic productivity.

Health Crisis: NCDs a Major Threat to Mauritius

Mauritius faces an urgent NCD crisis. The country has among the highest obesity and diabetes rates in the region, contributing to high levels of cardiovascular disease, disability, and premature death. According to WHO, taxation on tobacco, alcohol, and sugary products can serve as a triple win—reducing consumption, generating revenue, and saving lives.

“This is not just about taxes; it's about building a healthier, more productive future,” said a VISA representative during the roundtable discussions.

Next Steps: Institutionalizing Reform and Scaling Impact

Following the study, WHO and its partners are urging Mauritius to:

• Institutionalize regular, significant health tax increases

• Enforce existing health laws effectively

• Use tax revenue to finance prevention, treatment, and health education

• Expand modelling to cover alcohol and sugary drinks, to provide further evidence for future tax decisions

A Pivotal Moment for Public Health in Mauritius

With data now clearly showing the life-saving and economic impact of health-focused tax policies, Mauritius is at a pivotal moment. Continued leadership and political will could transform its health trajectory, saving tens of thousands of lives while boosting revenues that can be reinvested in social development.

The collaboration between WHO, VISA, UCT, and national institutions underscores the power of evidence-based policymaking in delivering inclusive, sustainable health outcomes.