OBJECTIVES: As health systems are under constant cost constraints, the search for alternative sources of funding is a continuous challenge. The present study aimed to assess the expected impact of health taxes on cigarettes and sugar-sweetened beverages on fiscal revenue and on total consumption in Greece.

METHODS: Official data on sales, total consumption, current prices and current taxation were sought from the Hellenic Statistical Authority and other official European sources. The expected changes in fiscal revenues were estimated with the typical elasticity formula. Price elasticity of cigarettes derived from country-specific studies, while for sugar-sweetened beverages from the international literature, in absence of local relevant studies. Three alternative scenarios were investigated; 20%, 25% and 30% taxation, applied on the mean current price.

RESULTS: The base case scenario of a 20% health tax on the mean current price of cigarettes, estimated a reduction in consumption by 62.7 million packets, while achieving an increase of fiscal revenue by 371,596,100.35€ per year. For sugar-sweetened beverages, a 20% health tax is expected to lead to reduced consumption by 133.3 million liters while producing 199,402,112.00€ additional revenue. The alternative scenarios of 25% and 30% health taxes indicate increased revenues of 447,891,347.79€ and 517,964,322.08€ for cigarettes and 227,585,800.50€ and 247,102,752.00€ for sugar-sweetened beverages, respectively. In all scenarios, the increase in revenue is accompanied by reduction in consumption for both cigarettes and sugar-sweetened beverages.

CONCLUSIONS: The results of the present analysis demonstrate that health taxes can lead to reduction of harmful lifestyle behaviors, while simultaneously producing additional fiscal revenues. The issue arising from these findings concerns the proper allocation of these additional financial resources; the optimal choice seems to be within the healthcare system and, more specifically, in direct association with the burden of disease these harmful behaviors incur.