scholarly journals The elasticity of tobacco demand in Australia

2014 ◽  
Vol 7 (1) ◽  
Author(s):  
Caroline Kartika Joe ◽  
Chuanling Wei ◽  
Mengtian Li ◽  
Qingbo Dai
Keyword(s):  
Australian Bureau ◽  
Tax Revenue ◽  
Government Revenue ◽  
Tobacco Products ◽  
Elasticity Of Demand ◽  
Alternate Hypothesis ◽  
Cancer Council ◽  
Tobacco Tax ◽  
Australian Bureau Of Statistics

This paper examines the elasticity of demand of tobacco products in Australia from 2000 to 2011. The hypothesis is that the demand for cigarettes is inelastic. The alternate hypothesis is that the demand for cigarettes is elastic. The hypothesis implies that increasing tobacco tax decreases government tax revenue, while the opposite is true for a decrease in tobacco tax. This paper obtains data mainly from Australian Bureau of Statistics and Cancer Council Victoria. We find an increase in the excise rate and government revenue from tobacco products, therefore implying that the demand of tobacco products in Australia is inelastic. We find further support of this finding by examining factors such as the age and income structure of the population.

scholarly journals The elasticity of tobacco demand in Australia

2014 ◽  
Vol 7 (1) ◽  
Author(s):  
Caroline Kartika Joe ◽  
Chuanling Wei ◽  
Mengtian Li ◽  
Qingbo Dai
Keyword(s):  
Australian Bureau ◽  
Tax Revenue ◽  
Government Revenue ◽  
Tobacco Products ◽  
Elasticity Of Demand ◽  
Alternate Hypothesis ◽  
Cancer Council ◽  
Tobacco Tax ◽  
Australian Bureau Of Statistics

<p>This paper examines the elasticity of demand of tobacco products in Australia from 2000 to 2011. The hypothesis is that the demand for cigarettes is inelastic. The alternate hypothesis is that the demand for cigarettes is elastic. The hypothesis implies that increasing tobacco tax decreases government tax revenue, while the opposite is true for a decrease in tobacco tax. This paper obtains data mainly from Australian Bureau of Statistics and Cancer Council Victoria. We find an increase in the excise rate and government revenue from tobacco products, therefore implying that the demand of tobacco products in Australia is inelastic. We find further support of this finding by examining factors such as the age and income structure of the population.<strong></strong></p>

Demand for tobacco products in Bangladesh

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.

Estimated impact of the GST on tobacco products in India

2018 ◽  
Vol 28 (5) ◽  
pp. 506-512 ◽  
Author(s):  
Rijo M John ◽  
Estelle Dauchy ◽  
Mark Goodchild
Keyword(s):  
National Level ◽  
Weighted Average ◽  
Value Added ◽  
State Level ◽  
Tax Revenue ◽  
Tax Rates ◽  
Tobacco Products ◽  
Goods And Services ◽  
Elasticity Of Demand ◽  
The Impact

ObjectiveTo examine the potential impact of the goods and services tax (GST) on price, consumption and tax revenue from tobacco products in India and across states.MethodsData on prices, tax rates and tax revenue are used to estimate a benchmark scenario prior to the GST implementation in 2017–2018. Using own-price elasticity of demand for tobacco products, we estimate the impact of GST at the state level and the aggregate state-wise impact to obtain the national level impact.FindingsWe predict that the statutory GST rate of 28% plus compensation cess will increase the price of cigarettes, bidi and smokeless tobacco by 0.18%, 8.8% and 6%, respectively, and, as a result, it will reduce the weighted average consumption by 0.3%, 10% and 6% and increase tax revenue by 0.17%, 35% and 4.7%, respectively. Most states will experience a fall in tax revenue from tobacco products by more than 50% compared with the value-added tax revenue they collected pre-GST. The GST compensation cess will have to be used to compensate states’ revenue shortfalls.ConclusionsThe GST has increased the complexity of the tax system for tobacco products. In particular, for cigarettes, the specific cess constitutes the majority of tax revenue, and therefore, it must be revised regularly to protect revenue and keep real prices from falling. In addition, India should reintroduce excise taxation on all tobacco products, at least in part, on top of the GST, to make them less affordable and to smooth the transition after the expiration of the compensation cess.

scholarly journals The Income Elasticity of Gambling in Australia and New Zealand

2015 ◽  
Vol 8 ◽  
Author(s):  
Jamie Davies
Keyword(s):  
New Zealand ◽  
Income Elasticity ◽  
Luxury Good ◽  
Gaming Industry ◽  
Elasticity Of Demand ◽  
Income Elasticities ◽  
Industry Sector ◽  
Alternate Hypothesis ◽  
Australian Bureau Of Statistics ◽  
Income Elasticity Of Demand

This paper analyses disposable income as it relates to consumer demand for gambling products in Australia and New Zealand from Financial years (FY) 1998 to 2008. The hypothesis is that income elasticity of demand for gambling products is greater than one i.e. gambling products are a luxury good. The alternate hypothesis is that the income elasticity of demand for gambling products are less than one and are classed as either necessity or inferior goods. Data compiled by the Queensland Treasury and Trade department, the Australian Bureau of Statistics, Statistics New Zealand and the New Zealand Department of Internal Affairs was used to calculate income elasticities for all gambling products. The results indicate that income elasticity for gambling products varies over time and is greater than one pre FY2003 and less than one post FY2003. However, once the change in market share of different gambling products and the large increase in supply in the gaming industry sector (pre FY2003) was accounted for, income elasticities were estimated to be less than one in support of the alternate hypothesis.

Aboriginal and Torres Strait Islander Health — Current Policy Issues

1998 ◽  
Vol 26 (1) ◽  
pp. 18-24
Keyword(s):  
Indigenous People ◽  
Torres Strait Islander ◽  
Health Problems ◽  
Australian Bureau ◽  
Government Policies ◽  
Current Policy ◽  
Policy Issues ◽  
Torres Strait ◽  
Australian Bureau Of Statistics ◽  
Torres Strait Islander Health

This article addresses Aboriginal and Torres Strait Islander health problems and critically investigates current government policies which are attempting to raise the health standards of these Indigenous people. Particular emphasis will be placed on the Queensland Aboriginal and Torres Strait Islander population, which, according to the Australian Bureau of Statistics census in 1986, stood at just over 61,000 or 2.4 per cent of the State's population.

scholarly journals Synthetic Business Microdata

2020 ◽  
Vol 10 (2) ◽  
Author(s):  
Chien-Hung Chien ◽  
Alan Hepburn Welsh ◽  
John D Moore
Keyword(s):  
Synthetic Data ◽  
Data Access ◽  
Australian Bureau ◽  
Trade Off ◽  
Information Reduction ◽  
Input And Output ◽  
Business Data ◽  
Business Survey ◽  
Australian Bureau Of Statistics ◽  
Inform Decision Making

Enhancing microdata access is one of the strategic priorities for the Australian Bureau of Statistics (ABS) in its transformation program. However, balancing the trade-off between enhancing data access and protecting confidentiality is a delicate act. The ABS could use synthetic data to make its business microdata more accessible for researchers to inform decision making while maintaining confidentiality. This study explores the synthetic data approach for the release and analysis of business data. Australian businesses in some industries are characterised by oligopoly or duopoly. This means the existing microdata protection techniques such as information reduction or perturbation may not be as effective as for household microdata. The research focuses on addressing the following questions: Can a synthetic data approach enhance microdata access for the longitudinal business data? What is the utility and protection trade-off using the synthetic data approach? The study compares confidentialised input and output approaches for protecting confidentiality and analysing Australian microdata from business survey or administrative data sources.

scholarly journals Designing an Optimum Fiscal Policy for Tobacco to Maximise the Tax Revenue, Social Savings and the Net Monetary Benefits in Sri Lanka

2019 ◽  
Author(s):  
Sathira Kasun Perera ◽  
Bharat Phani Vaikuntam ◽  
Denny John ◽  
Buddhika Senanayake
Keyword(s):  
Fiscal Policy ◽  
Sri Lanka ◽  
Tobacco Use ◽  
Tax Revenue ◽  
Monetary Benefit ◽  
Published Evidence ◽  
Tobacco Tax ◽  
The Government ◽  
Net Monetary Benefit ◽  
Tobacco Taxation

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.

scholarly journals Women and Superannuation: Work Until You Drop?

2009 ◽  
Vol 4 (1) ◽  
Author(s):  
Jo (Chau) Vu ◽  
James Doughney
Keyword(s):  
Regulatory Authority ◽  
Australian Bureau ◽  
Retirement Income ◽  
Paid Work ◽  
Retirement Benefits ◽  
Policy Initiatives ◽  
Paid Employment ◽  
Significant Barrier ◽  
Part Time ◽  
Australian Bureau Of Statistics

Superannuation is becoming an increasingly important source of retirement income. However, women in Australia face a significant barrier in accumulating superannuation entitlements because of their positions in the paid and unpaid workforce. When in paid work, women occupy lower positions, have more career breaks due to care responsibilities and have more part-time and casual employment. Many women, of course, do not work outside the home, and a smaller proportion of women engage in paid employment than do men. Consequently women have lower incomes, less wealth and less generous retirement benefits. Our analysis of the Survey of Employment Arrangements and Superannuation and other Australian Bureau of Statistics data, together with data published by the Australian Prudential Regulatory Authority, reveals that dramatic policy initiatives will be needed to improve women’s access to retirement resources. Such policies do not apply only to superannuation but must address women’s positions in the paid workforce and their care responsibilities.

Carbon Tax Implementation in the Energy Sector: A Comparative Study in G20 and ASEAN Member States (AMS)

2021 ◽  
Author(s):  
Filda C. Yusgiantoro ◽  
◽  
I Dewa Made Raditya Margenta ◽  
Haryanto Haryanto ◽  
Felicia Grace Utomo
Keyword(s):  
Energy Demand ◽  
Carbon Tax ◽  
Ghg Emissions ◽  
Energy Sector ◽  
Tax Revenue ◽  
Government Revenue ◽  
Low Carbon ◽  
Member States ◽  
Asean Member ◽  
Tax Exemptions

1. This report shows that six G20 countries (Japan, South Africa, Argentina, France, Ireland, and Mexico) and one ASEAN Member States (Singapore) have implemented a carbon tax. 2. The energy sector is the primary GHG emissions contributor in most member states, except Indonesia. However, the energy sector in Indonesia will highly contribute to the national GHG emissions considering the rise of energy demand due to economic and population growth. 3. The effectiveness of carbon tax is specific to which sectors are taxed and which sectors are exempt to a country member. Specifically, a higher emissions price may not cover a large share of emissions in the country. The high carbon tax in France only covers 35% of total emissions in its jurisdiction. Meanwhile, Japan and Singapore’s low carbon tax covers 75% and 80% of total emissions in their jurisdiction, respectively. 4. The numbers of sectoral coverage by emissions price will impact the level of revenues generated from the carbon tax. France obtained the most significant carbon tax revenue for more than USD 9.6 billion. Meanwhile, Argentina generated less than USD 1 million, likely due to tax exemptions in natural gas commodities. 5. The contribution level of carbon tax revenue to the government’s total revenue varies for each country. France and Ireland’s carbon tax revenue contributes 0.71% and 0.53% of their total government revenue, respectively. Meanwhile, the rest of the countries’ carbon tax revenue contributed less than 0.3% each to their government revenue.

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