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

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.

scholarly journals Underground economy and GDP growth: Evidence from China’s tax reforms

2021 ◽  
Vol 7 (1) ◽  
pp. 87-107
Author(s):  
Yu kun Wang ◽  
◽  
Zhang Li ◽  
Keyword(s):  
Local Governments ◽  
Tax Reform ◽  
Value Added ◽  
Underground Economy ◽  
Gdp Growth ◽  
National Bureau ◽  
Tax Reforms ◽  
Effect Change ◽  
Tax Rate ◽  
The Impact

Since 1991, China has implemented two significant tax reforms. The first reform, in 1994, was a large-scale adjustment of the tax distribution system between the central and local governments, and the second reform, in 2012, replaced business tax with value-added tax. Also, the size of China’s underground economy decreased from 13.55% in 1995 to 12.30% in 2016. The paper presents an evaluation of the effect of the two tax reforms and the existing underground economy on GDP growth in China. GDP is defined as explained variable, the explanatory variables include: the ratio of declared income to actual income, the change of concealed income, and the influence of tax rate change on declared income and concealed income. According to the tax reform in 1994 and 2012, two dummy variables are set respectively. In methodology, this paper uses Simultaneous equations model, SUR-OLSs and Slutsky identity. Our estimation is based on the official statistics of China National Bureau of Statistics in the period from 1991 to 2019. In empirical analysis, we decomposed tax changes into tax rate effect (change of budget constraint slope) and income effect (change of tax liability), then analyzed the impact of tax elasticity on GDP growth. The empirical results demonstrate that both the 1994 tax reform and 2012 tax reform have had a positive impact on GDP, with high statistical significance respectively. The results also confirm that the increase of tax rate leads to the increase of hidden income, which eventually leads to the decrease of GDP. The offered methodology can also be applied to most countries for time series analyses.

scholarly journals Influence of Age on 2040 Cancer Burden in the Older Population of the Gulf Cooperation Council (GCC) Countries: Public Health Implications

2021 ◽  
Vol 28 ◽  
pp. 107327482110271
Author(s):  
Sohaila Cheema ◽  
Patrick Maisonneuve ◽  
Albert B. Lowenfels ◽  
Amit Abraham ◽  
Sathyanarayanan Doraiswamy ◽  
...  
Keyword(s):  
Public Health ◽  
Eastern Mediterranean Region ◽  
Gulf Cooperation Council ◽  
World Health ◽  
International Agency ◽  
Older Population ◽  
Cancer Burden ◽  
Health Implications ◽  
Gcc Countries ◽  
Incidence And Mortality

Introduction and Study Aims: The underlying population of global regions varies widely and is a major determinant of regional cancer differences. The aims were to: (1) estimate the cancer burden in Gulf Cooperation Council (GCC) countries in 2040 for the ≥70 population and (2) assess the public health implications for this cancer increase. Methods: We used Global Cancer Observatory (GLOBOCAN) estimates of cancer incidence and mortality for people aged 70 years or more in GCC countries from 2018 to 2040 from the International Agency for Research on Cancer. For population growth, we used data for the same period from the Population Division of the United Nations Department of Economic and Social Affairs. From these, we calculated the predicted increase in the number of cancer cases and cancer deaths from 2018 to 2040 and the proportion of cases/deaths represented by those aged 70+ for the 2 time periods. Findings: In the GCC countries, the predicted number of newly diagnosed cancers and cancer deaths in the older population will increase by 465% and 462% respectively due to demographic changes—greater than other countries in the World Health Organization Eastern Mediterranean Region, or in countries of similar economic development. The largest predicted increases will be for Qatar and the United Arab Emirates. Based on the predicted population age, cancer burden among older people in the GCC countries will increase by approximately 460%. Conclusion: By the year 2040, the relationship between cancer and age will cause a 4- to 5-fold increase in the cancer burden in the GCC. These predictable changes will require additional planning and resources to provide appropriate healthcare.

scholarly journals Tax Revenue, Tax Reform and Government Expenditure: The Case of Nigerian Economy (1994 – 2017)

2020 ◽  
pp. 1-12
Author(s):  
Chinedu Jonathan Ndubuisi ◽  
Onyekachi Louis Ezeokwelume ◽  
Ruth Onyinyechi Maduka
Keyword(s):  
Income Tax ◽  
Tax Reform ◽  
Government Expenditure ◽  
Value Added ◽  
Series Data ◽  
Tax Revenue ◽  
Value Added Tax ◽  
Tax Reforms ◽  
Level Of Significance ◽  
Excise Duties

The objective of this study is to empirically investigate the effect of tax revenue and years tax reforms on government expenditure in Nigerian. Tax revenue were explained using custom and excise duties, company income tax, value-added tax and tax reforms explained by the years in which reforms took place measured by dummy variables as proxies. In conducting this research, an annual time series data from central bank statistical bulletins and Federal Inland revenue Service of Nigeria spanning from 1994-2017 were employed. The data were tested for stationarity using the Augmented Dicker-Fuller Unit Root Test and found stationary at first difference. The Johansen co-integration test was also conducted and showed that the variables are co-integrated at the 5% level, which implied that there is a long-run relationship between the variables in the model. The presence of co-integration spurred the use of vector error correction model and VEC granger causality to determine the effects and decision for the study objective. Findings revealed that Customs and Excise Duties has positive (3.96) and significant (-8.38) impact on government expenditure at 5% level of significance (t=8.38>1.96), Company Income Tax has negative (-1.25) and significant (2.98) impact on government expenditure at 5% level of significance (t=2.98>1.96), Value added tax has positive (8.54) and significant (3.90) impact on government expenditure at 5% level of significance (t=3.90>1.96) and Tax reforms periods has negative(-3.52E+12) and significant (8.39) impact on government expenditure at 5% level of significance (t=8.39>1.96). The study thus concluded that tax revenue and tax reforms significantly affect the Nigerian economy with the direction of causation running from government revenue to government expenditure, supporting the revenue-spend or tax-spend hypothesis.  It was recommended while seeking to increase its revenue base via tax should also increase their expenditure profile to create a balance with the tax revenue and every other tax reform should be geared towards this balance.

The global context for public health nutrition taxation

2010 ◽  
Vol 14 (1) ◽  
pp. 176-186 ◽  
Author(s):  
Anne Marie Thow ◽  
Peter Heywood ◽  
Stephen Leeder ◽  
Lee Burns
Keyword(s):  
Public Health ◽  
Tax Policy ◽  
Tax Reform ◽  
Value Added ◽  
Trade Liberalisation ◽  
Healthy Foods ◽  
Public Health Nutrition ◽  
Reform Agenda ◽  
Excise Taxes ◽  
Global Agenda

AbstractObjectiveTo assess critically the scope for public health nutrition taxation within the framework of the global tax reform agenda.DesignReview of the tax policy literature for global policy priorities relevant to public health nutrition taxation; critical analysis of proposals for public health nutrition taxation judged against the global agenda for tax reform.SettingThe global tax reform agenda shapes decisions of tax policy makers in all countries. By understanding this agenda, public health nutritionists can make feasible taxation proposals and thus improve the development, uptake and implementation of recommendations for nutrition-related taxation.ResultsThe priorities of the global tax reform agenda relevant to public health nutrition taxation are streamlining of taxes, adoption of value-added tax (VAT), minimisation of excise taxes (except to correct for externalities) and removal of import taxes in line with trade liberalisation policies. Proposals consistent with the global tax reform agenda have included excise taxes, extension of VAT to currently exempted (unhealthy) foods and tariff reductions for healthy foods.ConclusionsProposals for public health nutrition taxation should (i) use existing types and rates of taxes where possible, (ii) use excise taxes that specifically address externalities, (iii) avoid differential VAT on foods and (iv) use import taxes in ways that comply with trade liberalisation priorities.

scholarly journals TAX REFORM AND NONCOMPLIANCE IN INDONESIA

2017 ◽  
Vol 32 (2) ◽  
pp. 87 ◽  
Author(s):  
Heru Iswahyudi
Keyword(s):  
Tax Reform ◽  
Value Added ◽  
National Accounts ◽  
Top Down ◽  
Tax Reforms ◽  
Compliance Behavior ◽  
The World ◽  
The Difference ◽  
The Impact ◽  
Central Board

The purpose of this paper is to examine the impact of Indonesia’s tax reforms of 2000 and 2008/2009 on taxpayers’ noncompliance. Noncompliance is defined as the difference between the Value Added Tax (VAT) liability and the actual revenue. Data are mainly collected from the World Input-Output Database and Indonesia’s Central Board of Statistics. The methodology uses one of the ‘top-down’ approaches, in which national accounts figures are employed to arrive at an estimation of the VAT liability. It is found that compliance deteriorated when reform efforts were incomplete – that is when the reforms suffered from decelerations, setbacks or reversals. This paper contributes to the literature by providing a framework for analyzing the impact of tax reform on taxpayer’s compliance behavior.

scholarly journals What Drives Inflation in Gulf Cooperation Council (GCC) Countries

2019 ◽  
Vol 10 (1) ◽  
pp. 133
Author(s):  
Majed Alharthi
Keyword(s):  
World Bank ◽  
Method Of Moments ◽  
Generalized Method Of Moments ◽  
Value Added ◽  
Oil Prices ◽  
Gulf Cooperation Council ◽  
Least Square ◽  
Gcc Countries ◽  
Inflation Rates ◽  
Main Determinants

The main reason of this study is to determine the main inflation determinants in Gulf Cooperation Council (GCC) countries over the period 1996-2016. The GCC area is exposing many economic challenges and risks like higher prices of basic products and services. Moreover, GCC countries impose value added tax in 2018 that increased the prices significantly. To reduce the prices rates, GCC governments decided to support the local manufacturing rather than depending on imports. However, controlling the inflation rates is showing the efficiency of economic administration for any country. In this study, the data was gathered through the United Nations Conference on Trade and Development (UNCTAD) International Monetary Fund (IMF) and World Bank (WB) databases. Statistically, the data were analysed by generalized method of moments (GMM) and generalized least square (GLS). The main results of this study show that the foreign direct investment (FDI) is one of main determinants that has an inverse and significant influence on inflation. Moreover, the corruption impacted the inflation positively and significantly. Finally, the oil prices are controlling the inflation as higher oil prices increase the inflation rates significantly.

scholarly journals Implementation of tobacco control measures in the Gulf Cooperation Council countries, 2008–2020

2021 ◽  
Vol 16 (1) ◽  
Author(s):  
Sarah S. Monshi ◽  
Jennifer Ibrahim
Keyword(s):  
Tobacco Control ◽  
Tobacco Use ◽  
Tobacco Industry ◽  
National Level ◽  
Gulf Cooperation Council ◽  
Control Measures ◽  
World Health ◽  
Careful Examination ◽  
Gulf Region ◽  
Gcc Countries

Abstract Background The World Health Organization (WHO) Framework Convention on Tobacco Control (FCTC) was developed to assist nations in reducing the demand and supply of tobacco. As of 2020, 182 nations joined the FCTC, agreeing to implement the recommended tobacco control measures. The Gulf Cooperation Council (GCC) countries, including Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates (UAE) ratified the WHO FCTC by August 2006. Given the unique political, cultural, and religious context – and known tobacco industry efforts to influence tobacco use- in these nations, a careful examination of the translation of FCTC measures into policy is needed. This study aimed to assess the implementation of FCTC tobacco control measures at the national level within the six GCC countries. Method We collected and coded the FCTC measures that were implemented in the GCC countries. We examined trends and variations of the implementation between 2008 and 2020. Results GCC countries implemented most FCTC measures targeting the demand for and supply of tobacco, with some variation among countries. Bahrain and Qatar were more comprehensively implementing FCTC measures while Kuwait and Oman implemented the least number of the FCTC measures. Implementing measures related to tobacco prices and eliminating the illicit tobacco trade has slowly progressed in GCC countries. All GCC countries entirely banned smoking in workplaces while three countries implemented a partial ban in restaurants. Only Oman has restrictions on tobacco ads shown in media. There is progress in implementing FCTC measures related to tobacco packaging, cessation, and sale to minors in most GCC countries. Conclusions Given the influence of the tobacco industry in the Gulf region, the findings suggest a need for ongoing surveillance to monitor the proliferation of tobacco control measures and evaluate their effectiveness. Efforts required to address tobacco use should correspond to the unique political and cultural background of the GCC countries.

scholarly journals Assessing the Effects of a Tobacco Tax Reform on the Industry Price-Setting Strategy

2021 ◽  
Vol 18 (19) ◽  
pp. 10376
Author(s):  
Jose Angelo Divino ◽  
Philipp Ehrl ◽  
Osvaldo Candido ◽  
Marcos Aurelio Pereira Valadao
Keyword(s):  
Tax Reform ◽  
Executive Power ◽  
Price Setting ◽  
Goods And Services ◽  
Cigarette Industry ◽  
Cross Border ◽  
Cigarette Tax ◽  
Tobacco Tax ◽  
Cigarette Brand ◽  
Price Floor

In July 2020, the Executive Power submitted Bill no. 3887-2020 as the first step towards a wide reform of the Brazilian tax system. It will replace the current PIS/COFINS (charged on turnover of companies) by the CBS (a tax on goods and services), which includes a special regime for cigarettes. The novelty is that the specific cigarette tax will be charged on the highest retail price per cigarette brand across the country. This research simulates three scenarios that differ according to the price-setting strategy of the tobacco industry in reaction to the proposed tax reform. In all simulations, the tax reform would result in considerably higher cigarette prices, lower cigarette consumption, higher tax collection, and an implicit minimum price that is far above the current official price floor. Furthermore, the price dispersion and cross-border shopping across states would be reduced because prices and tax burden per brand would tend to be the same across the country due to the dominant price-setting strategy in the cigarette industry.

scholarly journals IMPLEMENTASI PENGALOKASIAN DANA PAJAK (EARMARKING TAX) DARI PENERIMAAN PAJAK ROKOK TERHADAP UPAYA KESEHATAN MASYARAKAT DI PROVINSI SULAWESI UTARA

2017 ◽  
Vol 12 (01) ◽  
Author(s):  
Damayanti Rante Tambing ◽  
David Saerang ◽  
Heince Wokas
Keyword(s):  
Public Health ◽  
Health Service ◽  
Tax Policy ◽  
Public Health Service ◽  
Public Health Services ◽  
The Public ◽  
North Sulawesi ◽  
Cigarette Tax ◽  
Tobacco Tax ◽  
Public Health Effort

The cigarette tax is applied in the province of North Sulawesi in 2014. Cigarette tax is a regulate tax that is specific to the health, then the purpose of applying cigarette tax is to protect the public against the dangers of cigarettes. Therefore, cigarette tax in earmarking tax policy is allocated at least 50% for public health service. The purpose of this study is to analyze the implementation of earmarking tax of Cigarettes tax to public health services in North Sulawesi Province has been in accordance with applicable legislation. The method used is descriptive qualitative. The results of this study can be seen that for the year 2016, earmarking tax policy of tobacco tax has not been applied in accordance with the appropriate. This is because spending on public health efforts has not reached the minimum value of 50% of tax revenues for provinces. Earmarking tax in North Sulawesi province runs with revenue and expenditure budget system (APBD), which is implemented through the regional public treasury account (RKUD) in terms of income and expenditure. Dinas Kesehatan as an agency that budgeted for public health effort would improve public health service standard by maximizing spending for the designation. Agencies related to the cigarette tax budgeting policy would prescribe standard operating procedures so that control over these policies can be done as appropriateKeywords: Earmarking tax policy, cigarette tax

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