Impact of tobacco tax reforms on tobacco prices and tobacco use in Australia

Background: Fiscal policy targeting tobacco control is identified as the most effective strategy for rapid control of tobacco use. An optimum fiscal policy to estimate the percentage taxation that will maximise the government tax revenue, social savings and the net monetary benefit has not been empirically designed before in Sri Lanka. Methods: A model was developed using Microsoft Excel 2016, utilizing up-to-date published evidence on the cigarette sales, current fiscal policy, social cost of tobacco use, consumer response and the price elasticity of cigarettes. Univariate estimates on the expected revenue from tobacco tax, average annual social savings and the net monetary benefit were predicted for different levels of tobacco taxation. A deterministic sensitivity analysis was performed covering all possibilities. The percentage taxation maximizing the government tax revenue and the net monetary benefit were identified. Results: It was estimated that a further 30% tax increase from the 2019 baseline will generate approximately LKR 3544 million per year of additional tax revenue for the government while saving LKR 28 069 million per annum as social savings. A fiscal elevation of 50% will produce identical annual tax revenue to that of 2018, while securing a social saving of more than LKR 47 600 million per annum. The maximum net monetary benefit is achievable at an overnight tax increase of 90% from the baseline, however with a short-term compromise in tax revenue. Conclusion: The well-defined thresholds take tobacco taxation advocacy in Sri Lanka a step forward and will assist the government in taking an informed decision on its fiscal policy for cigarettes.

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Prevalence of illicit tobacco use and tobacco tax avoidance in pregnancy

Irish Journal of Medical Science (1971 -) ◽

10.1007/s11845-020-02487-x ◽

2021 ◽

Author(s):

Brendan P. McDonnell ◽

Robert McCausland ◽

Sheila Keogan ◽

Luke Clancy ◽

Carmen Regan

Keyword(s):

Tobacco Use ◽

Tax Avoidance ◽

Tobacco Tax ◽

In Pregnancy

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The Introduction of Tobacco Excise Taxation in the Gulf Cooperation Council Countries: A Step in the Right Direction of Advancing Public Health

10.21203/rs.3.rs-964904/v1 ◽

2021 ◽

Author(s):

Sofia Delipalla ◽

Konstantina Koronaiou ◽

Jawad A. Al-Lawati ◽

Mohamed Sayed ◽

Ali Alwadey ◽

...

Keyword(s):

Public Health ◽

Tax Reform ◽

Value Added ◽

Gulf Cooperation Council ◽

World Health ◽

Tax Reforms ◽

Tax Rate ◽

Gcc Countries ◽

Cigarette Tax ◽

Tobacco Tax

Abstract Background The Gulf Cooperation Council (GCC) countries relied, until recently, solely on import duties for tobacco products. The agreement for the introduction of an excise and value added tax (VAT) in 2016 and 2017, respectively, in most GCC countries, was a major breakthrough for public health. There is, however, ample room for improvement. Methods The study examines the outcomes of tax reforms, for both public health and public finances, based on the World Health Organization (WHO) recommendations and best practices worldwide. Tax simulations were performed using the WHO TaXSiM model. The study is based on data from Saudi Arabia, the only GCC country for which sufficient data existed. Results We recommend a stepwise tax reform, which involves increasing the current ad valorem excise tax rate, phasing out import duties keeping total tax share constant and introducing a minimum excise, and finally switching to a revenue-neutral specific excise. If implemented, cigarette tax reform simulations show that the recommended reforms would lead to a higher than 50% increase in cigarette prices, 16% reduction in cigarette sales and almost 50% increase in total cigarette tax revenue. A significant number of cigarette-related deaths would be averted. Conclusions The recommended tax reforms are expected to lead to significant improvements in both public health and tobacco tax revenues. Our results provide useful insights that are of relevance to the whole GGC region. The effectiveness of the reforms, however, requires a strong tax and customs administration, including the establishment of a good database to monitor and advance public health.

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Tobacco control in China and the road to Healthy China 2030

The International Journal of Tuberculosis and Lung Disease ◽

10.5588/ijtld.19.0106 ◽

2020 ◽

Vol 24 (3) ◽

pp. 271-277 ◽

Cited By ~ 3

Author(s):

H. Guo ◽

G. Quan

Keyword(s):

Tobacco Control ◽

Tobacco Use ◽

Monitoring And Evaluation ◽

Control Measures ◽

World Health ◽

Public Health Perspective ◽

Media Campaigns ◽

The Public ◽

Tobacco Tax ◽

Health Organization

Healthy China 2030 aims to reduce the adult smoking rate from 27.7% in 2015 to 20% by 2030. Achieving this goal requires a review of the tobacco control measures introduced in China to date, the gaps that remain and the opportunities ahead. In 2008, the World Health Organization introduced six measures to reduce demand for tobacco called MPOWER. The progress China has made in implementing these measure varies: 1) monitor tobacco use and prevention policies. The surveillance on tobacco use has been rigorous, but the monitoring and evaluation of tobacco control policies needs to be strengthened; 2) protect people from tobacco use: pushes for national tobacco control legislation have stalled, but 18 subnational legislations have passed; 3) offer help to quit tobacco use. The accessibility and quality of cessation services needs to be improved; 4) warn about the dangers of tobacco. While there are no pictorial health warnings, tobacco control advocates have launched a series of anti-smoking media campaigns to inform the public; 5) enforce bans on tobacco advertising, promotion, and sponsorship. Legal loopholes and poor enforcement remain challenges; 6) raise taxes on tobacco: cigarettes in China are relatively cheap and increasingly affordable, which demonstrates the need for further tobacco tax increases indexed to inflation and income. China maintains a tobacco monopoly that interferes with tobacco control efforts and fails to regulate tobacco products from the public health perspective. Effective MPOWER measures, which depend upon the removal of tobacco industry interference from policymaking, are key to achieving the goal set by Healthy China 2030.

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Demand for tobacco products in Bangladesh

Tobacco Control ◽

10.1136/tobaccocontrol-2020-056297 ◽

2021 ◽

pp. tobaccocontrol-2020-056297

Author(s):

Nasiruddin Ahmed ◽

Tanvir Ahmed Mozumder ◽

Md. Tariq Hassan ◽

Rumana Huque

Keyword(s):

Tobacco Use ◽

Price Elasticity ◽

Household Income ◽

Effective Means ◽

Tobacco Products ◽

Price Elasticities ◽

Elasticity Of Demand ◽

Price Elasticity Of Demand ◽

Expenditure Survey ◽

Tobacco Tax

BackgroundTobacco tax increase is considered as one of the most effective means to reduce tobacco consumption and its consequences. An increase in taxes, which results in an increase in the price of tobacco products, reduces consumption. Historically, a number of studies estimated the responsiveness of quantity demanded to a change in price—the price elasticity of demand—of tobacco products in Bangladesh. However, the government’s stronger commitment to reducing tobacco use, rising standard of living, rapidly changing cultural norms due to globalisation, and the substantial fall in tobacco use seen in GATS 2017 necessitate an updated measure of price elasticity of tobacco use, which will allow for more accurate answers to questions of tobacco tax policy in the country. This study endeavours to fill this gap in the literature on demand for tobacco products in Bangladesh.ObjectiveTo estimate the price elasticity of demand for tobacco products, namely cigarettes, biris and smokeless tobacco (SLT) products with the 2016 household income and expenditure survey data in Bangladesh.MethodsWe used the Deaton model (1997) to estimate the price elasticities of demand for tobacco products using the Household Income and Expenditure Survey (HIES) 2016 dataset of the Bangladesh Bureau of Statistics. The HIES 2016 surveyed 46 076 households spread over 2304 primary sampling units across the country. We have calculated own price elasticities of demand for tobacco products by expenditure groups and by regions (rural and urban).ResultsThe estimates of own-price elasticity of demand for cigarette, biri and SLT products are −1.03, −1.34 and −0.30, respectively. The results show that rural households are more responsive to changes in the prices of cigarettes than urban households. Households with low expenditure are found to be more responsive to changes in the price of cigarettes than the households with high expenditure. This suggests that increases in cigarette prices at the lower end would effectively reduce cigarette consumption among the people having low expenditure and improve health equity.ConclusionsOur results suggest that the demand for smoking tobacco products is responsive to price changes. Therefore, substantial increase in the prices of tobacco products through taxation will result in significant reduction in tobacco use, particularly among the low expenditure households, while increasing government revenue.

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Assesing The Net Fiscal Consequences Of Tobacco Use In A High Consumption And High Tobacco Tax Country: The Case Of Greece

Value in Health ◽

10.1016/j.jval.2015.09.1448 ◽

2015 ◽

Vol 18 (7) ◽

pp. A506 ◽

Cited By ~ 3

Author(s):

N Kotsopoulos ◽

G Mergos ◽

M Postma ◽

M Connolly

Keyword(s):

Tobacco Use ◽

High Consumption ◽

Tobacco Tax ◽

Of Greece

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Tobacco tax initiatives to prevent tobacco use

Cancer ◽

10.1002/(sici)1097-0142(19981215)83:12a+<2666::aid-cncr2>3.0.co;2-b ◽

1998 ◽

Vol 83 (S12A) ◽

pp. 2666-2679 ◽

Cited By ~ 6

Author(s):

Jack Nicholl

Keyword(s):

Tobacco Use ◽

Tobacco Tax

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PAJAK TEMBAKAU: PERMASALAHAN PRODUKSI ROKOK ILEGAL DI INDONESIA

TRANSFORMASI: Jurnal Manajemen Pemerintahan ◽

10.33701/jt.v11i1.631 ◽

2019 ◽

pp. 14-40

Author(s):

Adfin Rochmad Baidhowah

Keyword(s):

Key Words ◽

Informal Sector ◽

Pragmatic Approach ◽

Technical Approach ◽

Tax Reforms ◽

Indonesian Government ◽

Tobacco Tax ◽

Revenue Administration ◽

Negative Behaviour ◽

Key Words Tobacco

Tax which can influencea country’s economy and society’s prosperity, namely through increasing health and revenue objectives (UN 2018 p. 40), such as tobacco tax. In Indonesia, the revenue from tobacco tax had been increasing from 2007 to 2018. This paper argues that Indonesia should tax the informal tobacco firms based several strategies. The contributors of Indonesian illicit cigarettes are 90 percent from domestic industries and 10 percent from oversea industries. The possible factors which cause the illicit cigarettes are Indonesian complex tax structure and negative behaviour of cigarettes firms. To solve the issues, the Indonesian government should conduct several strategies. First, analysing cost and benefit of taxing the informal sectors. Second, after deciding to tax the informal sectors, five tax reforms policies should be implemented by the Indonesian government, namely the capability of the revenue administration, the pragmatic approach, technical approach, firms’ incentive approach, and political and administrative incentive approaches. Key words: Tobacco tax, Informal Sector, National Revenue

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