Sin tax as a public health tool – strengths and weaknesses of this economic solution

The aim of the paper is to present in a synthetic way the sin tax tool, the mechanisms of its functioning, challenges related to the tool and examples of the application of this tax in selected countries.

In accordance with Agency for Health Technology Assessment and Tariff System guidelines, a review of literature in the PubMed and Cochrane scientific databases was conducted on the basis of search searches. They searched grey literature and institutional documents of health organizations and legal acts of selected countries that introduced sin tax in the period since 2005.

Sin tax is a public health tax that aims to reduce the negative health attitudes of the population through the use of a price regulation mechanism. In order to prepare an effective economic tool, it is important to model it properly. Today, 35 countries around the world have introduced an additional tax on tobacco products, which is wholly or partly used for health care. In 9 countries, targeted taxes have been introduced on a component whose excessive consumption adversely affects health (sugar, salt, fats).

Sin tax is a tool that, if properly implemented, can contribute to changing consumer behaviour and thus have a positive impact on the health of the population. It should be remembered that decisions taken at the central level, especially those concerning the introduction of new taxes, should be supported by reliable analyses. Although sin tax is undoubtedly an effective and increasingly widely used tool, it is not free from defects. One of its major drawbacks is its regressive character and potential negative social perception.