Background:
To demonstrate the impact of the increase of the Selective Tax on the Consumption of Cigarettes and other tobacco products (ISC) in the tax collection and increases in the prices of cigarettes, after 2009.

Methods:
The primary source of information is the database of the 2015 cigarette market survey conducted in the districts of Panama, Colón, David, Barú, San Miguelito and the indigenous districts of Guna Yala and Ngäbe-Buglé in July 2015. The fiscal collection data of the ISC of the Ministry of Economy and Finance were used as secondary sources and a linear trend analysis of the evolution of tax revenues derived from the ISC and linear regression of demand was made.

Results:
The ISC increase by 100% increased collection by 2.3 times between 2009 and 2016, in addition to providing resources to the health sector. Having a USD floor of 1.50 per pack led the price dispersion to rise for both legal and illegal brands.

Conclusions:
Anti-tobacco taxation policy has proven to be effective in increasing tax collection and prices for tobacco products in addition to helping to reduce the prevalence of tobacco consumption to 6.1% in smoked tobacco. The increase in taxes must be a continuous process to continue to maintain their effectiveness for what is proposed indexation.