Tobacco taxation has been a cornerstone of global tobacco control efforts for over a decade, with Article 6 of the WHO Framework Convention on Tobacco Control  (FCTC) recognizing tax as an important and effective means of demand reduction for tobacco. The UN General Assembly’s endorsement of the Sustainable Development Goals (SDGs) in 2015 further strengthened the links between tobacco control in the global development agenda, including tobacco taxation being identified as key to mobilizing domestic resources and financing for development - the Addis Ababa Action Agenda recognized that “price and tax measures on tobacco can be an effective and important means to reduce tobacco consumption and health-care costs, and represent a revenue stream for financing development in many countries”. Raising tobacco taxes is therefore also a SMART policy:

• Saves lives: Tobacco use is the leading cause of preventable deaths globally and claims eight million lives each year. Tobacco taxation is the single most effective measure for reducing tobacco consumption and its associated health burden worldwide.
• Mobilizes resources: It is estimated that in 2018 excise taxes on cigarettes generated US$ 361 billion in revenues worldwide, including US$ 162 billion in revenues for low- and middle-income countries (LMICs). The revenue potential is substantial: if all countries raised cigarette excise rates by the equivalent of US$ 1 per pack, then the amount of excise revenue from cigarettes would increase by US$ 178–219 billion, or by 49–61% at 2018. LMICs would gain the most, with excise revenues increasing by 82–103%, representing an extra US$ 133–167 billion.
• Addresses health inequities: Tobacco tax increases are effectively progressive or ‘pro-poor’ policies because of their positive distributional impact. Lower-income smokers benefit disproportionately in terms of health gains and income retention from reduced tobacco use. Low-income populations also benefit when tax revenues from tobacco taxes are allocated to expanding pro-poor programmes like health and education.
• Reduces burdens on health systems: The economic cost of tobacco was US$ 1.4 trillion in 2012. Tobacco taxes reduce tobacco-related burdens on governments and health systems through population-based preventive measures. Similarly, many household can avoid being pushed into poverty from the high out-of-pocket cost of medical care to treat tobacco related diseases.
• Targets noncommunicable disease (NCD) risk factors for the achievement of Sustainable Development Goals (SDGs): Tobacco use is a major risk factor for several deadly NCDs.