Tobacco Taxation in Latin America and the Caribbean

Uruguay

Figure ‎6.133. Uruguay - Trends in tobacco use prevalence

Percentage of the population aged 15 years and over who currently use any tobacco product (smoked and/or smokeless tobacco) on a daily or non-daily basis, 2000-2020

Note: Tobacco products include cigarettes, pipes, cigars, cigarillos, waterpipes (hookah, shisha), bidis, kretek, heated tobacco products (HTP), and all forms of smokeless (oral and nasal) tobacco. Tobacco products exclude e-cigarettes (which do not contain tobacco), e-cigars, e-hookahs, and e-pipes. The rates are age-standardized to the World Health Organisation (WHO) standard population. The LAC average was calculated as the average of Argentina, Bahamas, Barbados, Belize, Bolivia, Brazil, Chile, Colombia, Costa Rica, Cuba, the Dominican Republic, Ecuador, El Salvador, Guatemala, Guyana, Haiti, Honduras, Jamaica, Mexico, Panama, Paraguay, Peru, Saint Lucia, and Uruguay.

Source: WHO Global Health Observatory Data Repository (WHO, 2024[1]).

Table ‎6.69. Uruguay - Tobacco use prevalence by sex and age groups

Percentage of the population group, latest year available

	Tobacco use prevalence (all tobacco products)	Cigarette smoking prevalence (cigarettes only)
Students aged 13-15 years
Total	11.5	8.6
Males	9.7	6.9
Females	13.6	10.5
People aged 15 and over
Total	21.6	21.4
Males	25.6	25.2
Females	18.0	18.0

Note: Tobacco use prevalence is defined as the percentage of the population group who currently use any tobacco product (smoked and/or smokeless tobacco) on a daily or non-daily basis. Tobacco products exclude e-cigarettes (which do not contain tobacco), e-cigars, e-hookahs, and e-pipes. Data for students aged 13-15 years are from 2019 and taken from the Global School-based Student Health Survey. Data for people aged 15 and over correspond to 2017 and are taken from the Global Adult Tobacco Survey (GATS). For comparability purposes across countries, the Figure ‎6.133 uses another source of information (WHO Global Health Observatory Data Repository) which explains the small difference with figures included in this table.

Source: Global Adult Tobacco Survey, Uruguay 2017 (Government of Uruguay, 2017[43]); Global School-Based Student Health Survey (WHO, 2019[44]).

Table ‎6.70. Uruguay - Summary of MPOWER measures, 2022

Source: WHO report on the global tobacco epidemic (WHO, 2023[3]).

Figure ‎6.134. Uruguay - Taxes and prices of the most sold brand of cigarettes

Note: Prices correspond to a 20-cigarette pack of the most sold brand. The most sold brand of cigarettes is determined based on national market share information and can vary over time (i.e. the most sold brand of cigarettes in year 1 can be different from year 2). Retail prices in USD PPP are based on the implied purchasing power parity (PPP) conversion rate from the International Monetary Fund (IMF) World Economic Outlook Database (October 2023).

Source: WHO report on the global tobacco epidemic (WHO, 2023[3]); IMF World Economic Outlook Database (IMF, 2023[4]).

Figure ‎6.135. Uruguay - Trends in retail prices of cigarettes by brand category

In USD PPP per pack of 20 cigarettes, 2008-2022

Note: Prices correspond to a 20-cigarette pack of the cheapest, most sold and premium brands. The cheapest, most sold and premium brands of cigarettes are determined based on national market share information and can vary over time (i.e. the cheapest/most sold/premium brands of cigarettes in year 1 can be different from year 2). Retail prices in USD PPP are based on the implied PPP conversion rate from the IMF World Economic Outlook Database (October 2023).

Source: WHO reports on the global tobacco epidemic (WHO, 2009[5]; WHO, 2011[6]; WHO, 2013[7]; WHO, 2015[8]; WHO, 2017[9]; WHO, 2019[10]; WHO, 2021[11]); IMF World Economic Outlook Database (IMF, 2023[4]).

Figure ‎6.136. Uruguay - Affordability of cigarettes

Percentage of GDP per capita required to purchase 100 packs of 20 cigarettes

Note: The affordability indicator measures the percentage of the country’s GDP per capita required to purchase 100 packs of 20 cigarettes. A higher percentage means lower affordability of cigarettes while a lower percentage means higher affordability. To ensure comparability of average affordability across LAC over time, countries where information was unavailable for certain years have been excluded from the calculation. Data for Panel C are OECD calculations based on WHO reports on the global tobacco epidemic (2009-2023 editions). The cheapest and most sold brands of cigarettes are determined based on national market share information and can vary over time (i.e. the cheapest/most sold brand of cigarettes in year 1 can be different from year 2).

Source: WHO reports on the global tobacco epidemic (WHO, 2009[5]; WHO, 2011[6]; WHO, 2013[7]; WHO, 2015[8]; WHO, 2017[9]; WHO, 2019[10]; WHO, 2021[11]).

Table ‎6.71. Uruguay - Design of tobacco excise taxes across tobacco products, 2022

	Excise tax structure	Specific excise tax				Ad valorem excise tax			Excise tax floor
		Yes / No	Tax base	Rate per 20-unit pack USD PPP (local currency)	Indexation mechanisms	Yes / No	Tax base	Statutory rate	Yes / No	Tax base	Rate per 20-unit pack USD PPP (local currency)	Indexation mechanisms
Cigarettes	Specific only	Yes	Individual pack	3.0 (90.2)	No	No			No
Cigars	Ad valorem only	No				Yes	EFP excl. VAT *1.85	70%	No
Cigarillos	Ad valorem only	No				Yes	EFP excl. VAT *1.85	70%	No
Roll-Your-Own (RYO) tobacco	Specific only	Yes	Individual pack (45 g)	0.5 (13.4)	No	No			No
Heated tobacco products (HTPs)	No excise
ENDS and ENNDS	No excise

Note: Blank cells mean that there is no excise tax for the corresponding tobacco product. Following the WHO report on the global tobacco epidemic (WHO, 2021[11]), new tobacco and nicotine products in this report include electronic nicotine delivery systems (ENDS), electronic non-nicotine delivery systems (ENNDS), and heated tobacco products (HTP). Uruguay does not levy an excise tax on ENDs or ENNDS because their sales are banned (WHO, 2023[3]). However, the sales of HTPs are not taxed nor banned. Specific taxes are converted into USD PPP with the implied PPP conversion rate available in the IMF World Economic Outlook Database (October 2023). Specific excise taxes have been standardized to a 20-unit pack to allow the comparison across countries with different tax bases. Specific tax in Uruguay for RYO tobacco products is levied on pack of 45 grams. To compute the specific tax for an equivalent 20-unit pack of RYO tobacco, it is assumed that the median cigarette in terms of weight contains 0.75 gram of tobacco (Gallus et al., 2014[12]).

Source: Decreto No. 440/021; IMF World Economic Outlook Database (IMF, 2023[4]).

Table ‎6.72. Uruguay - Tobacco tax reforms since 2000

Year of adoption	Specific excise taxes	Ad valorem excise taxes	Other
2002	Cigarettes: increase in the tax rate to 68.5% levied on the price floor.	No	No
2005	Cigarettes: increase in the tax rate to 70% levied on the price floor. Cigars: increase in the tax rate to 41% levied on the price floor. RYO tobacco: increase in the tax rate to 28% levied on the price floor.	No	Cigarettes: increase in the price floor of cigarettes sold by the tobacco industry to its employees (Decree No. 276/985) to UYU 17.31 per pack of 20 cigarettes.
2006	No	No	Cigarettes: increase of the price floor of cigarettes sold by the tobacco industry to its employees (Decree No. 276/985) to UYU 19.0 per pack of 20 cigarettes.
2007	No	No	Cigarettes: increase in the price floor to UYU 30.72 per pack of 20 cigarettes.
2009	No	No	Cigarettes: increase in the price floor to UYU 40.0 per pack of 20 cigarettes; and to UYU 24.71 for cigarettes sold under Decree No. 276/985.
2010	RYO tobacco: increase in the tax rate to 70% levied on the price floor.	No	Cigarettes: increase in the price floor to UYU 54.29 per pack of 20 cigarettes. RYO tobacco: increase in the price floor to UYU 24.29 per pack of 45 grams.
2014	No	No	Cigarettes: increase in the price floor to UYU 58.71 per pack of 20 cigarettes. RYO tobacco: increase in the price floor to UYU 26.14 per pack of 45 grams.

Note: “Tobacco tax reform” refers to changes in the tobacco excise tax rates, the introduction of indexation mechanisms or minimum taxes, as well as adjustments to the tax base. These reforms typically entail the enactment of new laws or decrees. The table does not refer to recurrent tax changes that result from the indexation for inflation of tax brackets and price floors (if implemented). Increases of the price floor between 2015 and 2022 are not included in this table due to their regular nature. Tobacco tax reforms included reflect changes in the legislation, but not whether or when the reforms have been implemented.

Source: Decreto No. 99/002; Decreto No. 164/005; Decreto No. 204/005; Decreto No. 619/006; Decreto No. 232/07; Decreto No. 268/09; Decreto No. 69/010; Decreto No. 375/014.

Figure ‎6.137. Uruguay - Tobacco excise tax revenue

Percentage of GDP, latest year available

Note: See Box 2.1 (Chapter 2) for more information on tobacco tax revenue (source of information and calculations) and country selection. The latest year available is 2022 for Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Guyana, Honduras, Mexico, Nicaragua, Panama, Paraguay, Peru, Saint Kitts and Nevis, Suriname, and Uruguay; 2021 for Belize, Dominica, Ecuador, Grenada, Saint Lucia, Saint Vincent and the Grenadines; 2020 for Bahamas, Bolivia, Jamaica and Trinidad and Tobago; 2015 for Haiti; 2014 for Barbados.

Source: OECD Revenue Statistics (OECD, 2024[13]); WHO report on the global tobacco epidemic (WHO, 2023[3]); National data.

Figure ‎6.138. Uruguay - Trends in tobacco excise tax revenue

Percentage of GDP, 2000-2022

Note: “Tobacco tax reform” refers to the measures included in Table ‎6.72.

Source: OECD Revenue Statistics (OECD, 2024[13]); Decreto No. 99/002; Decreto No. 164/005; Decreto No. 204/005; Decreto No. 619/006; Decreto No. 232/07; Decreto No. 268/09; Decreto No. 69/010; Decreto No. 375/014.

Figure ‎6.139. Uruguay - Average excise tax revenue collected per pack of 20 cigarettes sold

Tobacco excise tax revenue in USD PPP collected per pack of legal cigarettes sold, latest year available

Note: See Box 2.1 (Chapter 2) for more information on tobacco tax revenue (source of information and calculations). The latest year available is 2022 for Argentina, Brazil, Chile, Colombia, Costa Rica, the Dominican Republic, El Salvador, Guatemala, Honduras, Mexico, Panama, Paraguay, Peru and Uruguay; 2021 for Ecuador; 2020 for Bolivia. The country selection is provided by the availability of data on sales of cigarettes in Euromonitor International Tobacco Industry edition, 2023 © All rights reserved (Euromonitor International, 2023[14]).

Source: OECD Revenue Statistics (OECD, 2024[13]); WHO report on the global tobacco epidemic (WHO, 2023[3]); National data; IMF World Economic Outlook Database (IMF, 2023[4]); and OECD calculations based on Euromonitor International’s Tobacco Industry edition (Euromonitor International, 2023[14]).

Figure ‎6.140. Uruguay - Change in tobacco tax policy indicators

Percentage change from base year, 2008-2022

Note: Both Panel A and Panel B figures are based on data for the most sold brand of cigarettes. The most sold brand of cigarettes is determined based on national market share information and can vary over time (i.e. the most sold brand of cigarettes in year 1 can be different from year 2). In Panel A, an increase in the affordability indicator means that cigarettes are becoming less affordable, while a decline in the affordability indicator means that cigarettes are becoming more affordable. In Panel B, “Pre-tax price” corresponds to the retail price of the most sold brand of cigarettes minus the indirect taxes levied on this brand, namely excise taxes, VAT, import duties and other. Indicators in Panel B have been computed using national currency and have been adjusted for inflation; therefore, present inflation-adjusted trends.

Source: WHO report on the global tobacco epidemic (WHO, 2023[3]); World Bank Open Data (World Bank, 2024[15]); IMF International Financial Statistics (IMF, 2024[19]).

References

[14] Euromonitor International (2023), Euromonitor International’s Tobacco Industry edition, https://www.euromonitor.com/tobacco (accessed on 1 August 2023).

[12] Gallus, S. et al. (2014), “Roll-your-own cigarettes in Europe”, European Journal of Cancer Prevention, Vol. 23/3, pp. 186-192, https://doi.org/10.1097/cej.0000000000000010.

[43] Government of Uruguay (2017), Global Adult Tobacco Survey Uruguay 2017, Ministry of Public Health of Uruguay/ National Institute of Statistics, https://cdn.who.int/media/docs/default-source/ncds/ncd-surveillance/data-reporting/uruguay/gats_uruguay_2017_countryreport.pdf?sfvrsn=3349b05b_1&download=true.

[19] IMF (2024), International Financial Statistics (IFS), International Monetary Fund, https://data.imf.org/?sk=4c514d48-b6ba-49ed-8ab9-52b0c1a0179b&sId=1390030341854 (accessed on 13 January 2024).

[4] IMF (2023), World Economic Outlook Database, International Monetary Fund, https://www.imf.org/en/ Publications/WEO/weo-database/2023/October (accessed on 13 January 2024).

[13] OECD (2024), Global Revenue Statistics Database, Organisation for Economic Co-operation and Development, https://www.oecd.org/tax/tax-policy/global-revenue-statistics-database.htm (accessed on 13 August 2023).

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[44] WHO (2019), Global school-based student health survey. Uruguay 2019 Fact Sheet, World Health Organization, https://www.who.int/publications/m/item/2019-gshs-fact-sheet-uruguay.

[10] WHO (2019), WHO report on the global tobacco epidemic 2019: Offer help to quit tobacco use, World Health Organization, https://www.who.int/publications/i/item/9789241516204.

[9] WHO (2017), WHO report on the global tobacco epidemic 2017: Monitoring tobacco use and prevention policies, World Health Organization, https://www.who.int/publications/i/item/9789241512824.

[8] WHO (2015), WHO report on the global tobacco epidemic 2015: Raising taxes on tobacco, World Health Organization, https://www.who.int/publications/i/item/9789241509121.

[7] WHO (2013), WHO report on the global tobacco epidemic 2013: Enforcing bans on tobacco advertising, promotion and sponsorship, World Health Organization, https://www.who.int/publications/i/item/9789241505871.

[6] WHO (2011), WHO report on the global tobacco epidemic 2011: Warning about the dangers of tobacco, World Health Organization, https://www.who.int/publications/i/item/9789244564264.

[5] WHO (2009), WHO report on the global tobacco epidemic 2009: Implementing smoke-free environments, World Health Organization, https://www.who.int/publications/i/item/9789241563918.

[15] World Bank (2024), World Bank Open Data, World Bank, https://data.worldbank.org/ (accessed on 13 January 2024).