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 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 Effects of the Brazilian tax reform plans on the tobacco market

2021 ◽  
pp. tobaccocontrol-2021-056822
Author(s):  
Jose Angelo Divino ◽  
Philipp Ehrl ◽  
Osvaldo Candido ◽  
Marcos Aurelio Pereira Valadao
Keyword(s):  
Tax Reform ◽  
Smoking Behaviour ◽  
National Health Survey ◽  
Cigarette Consumption ◽  
Sample Survey ◽  
Constitutional Amendment ◽  
Tax Collection ◽  
Goods And Services ◽  
Tobacco Tax ◽  
Cigarette Prices

BackgroundThere has been an intense debate in the Brazilian National Congress on how to reform the country’s tax system on consumption. This paper investigates the effects of the tax reform under the Constitutional Amendment Bill 45/2019 on cigarette prices, consumption and tax collection. The reform will introduce a new goods and services tax (GST) and tobacco excise tax (TET).MethodsThe micro data from the National Household Sample Survey (PNAD) of 2008 and the National Health Survey (PNS) of 2013 are inputs in the simulation in order to determine the smoking behaviour and consumer responses to price changes as accurately as possible across the different Brazilian states. We developed three scenarios for the tobacco tax reform and their effects on cigarette prices, smoking behaviour and tax collection. We also estimate the size of the illicit cigarette market by Brazilian state and simulate the impacts of a 10% reduction in its market share.FindingsOverall, we found that a GST of 27% and a TET of either 51%, 56% or specific 3.89 BRL per pack would lead to considerably higher cigarette prices, lower cigarette consumption and, above all, an increase of cigarette tax collection between 8% and 27% depending on the state. A discretionary 10% reduction in the illicit market would add about 8.5% of extra tax collection per year to the country.ConclusionsThe simulated scenarios demonstrated that, to keep the cigarette prices at least at the same level as those in the current tax scheme, TET should be no less than 77.85% of the retail price. This means that any politically feasible tax reform should result in higher cigarette prices and a reduction in cigarette consumption. Considering the nationwide effect, in all scenarios, the total increase in tobacco tax revenue is around 8.5% or 1.5 billion BRL per year. This extra revenue is highly desirable in an environment of chronic fiscal imbalance and the COVID-19 pandemic crisis.

A Study on Consumers’ Awareness on Goods and Services Tax

2018 ◽  
Vol 6 (11) ◽  
pp. 30
Author(s):  
A. Hilary Joseph ◽  
D. Kanakavalli
Keyword(s):  
Tax Reform ◽  
Subsequent Stage ◽  
State Governments ◽  
Value Addition ◽  
Goods And Services ◽  
Late Night ◽  
Single Tax ◽  
Doing Business ◽  
Ease Of Doing Business ◽  
The One

The Goods and Services Tax (GST) -- India's biggest tax reform since independence formally launched in Parliament by Prime Minister Narendra Modi and President Pranab Mukherjee came into force after 17 tumultuous years of debate, unifying more than a dozen central and state levies.  The new tax regime was ushered at the late night of 30th June and came into force on 1st July 2017.  The one national GST unifies the country's USD 2 trillion economy and 1.3 billion people into a common market.  As commented by Mr.Modi, GST is not just tax reform but its economic reform. GST is a way forward in the ease of doing business.  In the language of law, it is called the goods and services tax, but the benefit of GST is really a Good and Simple Tax. Good because multiple taxes will be removed. Simple because it requires just one form and is easy to use.  GST is a single tax on the supply of goods and services, right from the manufacturer to the consumer.  Credits of input taxes paid at each stage will be available in the subsequent stage of value addition, which makes GST essentially a tax only on value addition at each stage. The final consumer will thus bear only the GST charged by the last dealer in the supply chain, with set-off benefits at all the previous stages.  It renders numerous benefits to different parties such as business and industry, central and state governments and the ultimate consumers.  An effort is made to understand the consumers’ awareness on Goods and Services Tax. Everything that is introduced will attract agitation and unrest among different group of people and they can easily be overcome by designing programmes to clarify the objections of renowned economists.  GST will sure to have success when the confidence of every individual Indian citizens have obtained.

The Request for Mutual Assistance and the European Investigation Order – Is the Modern Legal Assistance Instrument Better than its Predecessor

2020 ◽  
Vol 26 (2) ◽  
pp. 211-216
Author(s):  
Georgia Papucharova
Keyword(s):  
European Convention ◽  
Legal Assistance ◽  
Judicial Cooperation ◽  
Mutual Legal Assistance ◽  
Mutual Assistance ◽  
Goods And Services ◽  
Advantages And Disadvantages ◽  
Cross Border ◽  
International Response ◽  
Criminal Matters

AbstractEuropean evidence law is a quite sensitive topic and has always been the cause of much debate by practitioners and academics. Theoretical and physical borders do not matter for transnational crime. The intensive mobility of people and the evolution of world trade with goods and services create favorable conditions for the cross-border crime to develop. Therefore, it is of a great importance to take far-reaching steps to an upgraded mechanism for obtaining evidence in and from the Member States. This article examines the application of two mutual legal assistance instruments – the request for mutual assistance, which was established by the European Convention on Mutual Assistance in Criminal Matters of 1959, the EU Mutual Legal Assistance Convention of2000 with its 2001 Protocol, and Arts. 48 to 53 of the Schengen Agreement, and the European Investigation Order introduced by the Directive 2014/41/EU of the European Parliament and of the Council of 3 April 2014 regarding the European Investigation Order in criminal matters. The main objective of this research is to emphasize the advantages and disadvantages of both judicial cooperation mechanisms. A comparative analysis of both operational tools is an appropriate way to assess which one is related to more procedural savings and how both of them deal with the protection of human rights. Thus, the modern instruments for judicial cooperation in the area of transnational evidence-gathering as an international response to crimes with cross-border dimensions can be adequately valued.

GST - Sway On Small Scale Industries

2019 ◽  
Vol 118 (10) ◽  
pp. 365-372
Author(s):  
Jayanti.G ◽  
Dr. V.Selvam
Keyword(s):  
State Government ◽  
Tax Reform ◽  
Small Scale ◽  
Tax Revenue ◽  
Tax System ◽  
Goods And Services ◽  
Single Tax ◽  
The People ◽  
Indirect Taxes ◽  
The Government

India being a democratic and republic country, has witnessed the biggest indirect tax reform after much exploration, GST bill roll out on 1 April 2017.  The concept of this reform is for a unified country-wide tax reform system.  Enterprises particularly SMEs are caught in a state of instability.  Several taxes such s excise, service tax etc., have been subsumed with a single tax structure. it is the responsibilities of both centre and state government to shoulder the important responsibility to cater the needs of the people and the nation as a whole.  The main basis of income to the government is through levy of taxes.  To meet the so called socio-economic needs and economic growth, taxes are considered as a main source of revenue for the government.  As per Wikipedia “A tax is a mandatory financial charge or some other type of levy imposed upon tax payer by the government in order to fund various public expenditure”   it is said that tax payment is mandatory, failure to pay such taxes will be punishable under the law.   The Indian tax system is classified as direct and indirect tax.   The indirect taxes are levied on purchase, sale, and manufacture of goods and provision of service.  The indirect tax on goods and services increases its price, this can lead to inflationary trend.  Contribution of indirect taxes to total tax revenue is more than 50% in India, therefore, indirect tax is considered as a major source of tax revenue for the government, which in turn is one of source for GDP growth.  Though indirect tax is a major source of revenue, it had lot of hassles.  To overcome the major issues of indirect tax system the government of India subsumed most of the indirect tax which in turn gave birth to the concept called Goods and Service Tax.

China’s Cross-Border E-Commerce Tax Reform and Countermeasures

2021 ◽  
Vol 36 (2) ◽  
pp. 45-66
Author(s):  
Pei-Yan Wu ◽  
Jae-Sung Hong
Keyword(s):  
Tax Reform ◽  
Cross Border

scholarly journals Goods and Services Tax(GST): Biggest Tax Reform In Independent India

2017 ◽  
Vol 5 (01) ◽  
Author(s):  
Preeti Pant
Keyword(s):  
Present Article ◽  
Fiscal Federalism ◽  
Tax Reform ◽  
State Level ◽  
Federal System ◽  
Tax Structure ◽  
Indian Government ◽  
Goods And Services ◽  
Cooperative Federalism ◽  
Sincere Effort

After a marathon debate on Goods and Services Tax (GST) bill finally India witnessed the biggest tax reform after her independence. At the midnight of 30th June, 2017 GST was launched and legally enforced by the Indian Government. It is the biggest tax reform in independent India in last 70 years and will help to modernise Asia’s third largest economy. GST is passed to imply the principle of “One Nation One Tax”. GST has oriented the Indian federal system from fiscal federalism to cooperative federalism. It is replacing the multiple layers of complex taxation currently existing in India and expected to result in simplification of indirect tax structure (at both Centre and State level). Present article includes several aspects of GST. A sincere effort has been made to highlight the implications of GST for government, industries and consumers along with its probable effects on the economy. Besides, practical difficulties related to GST have also been discussed in brief.

scholarly journals Ukrainian-Polish trade and economic relations in modern conditions

2020 ◽  
Vol 23 (10) ◽  
pp. 36-46
Author(s):  
Borys Sulym
Keyword(s):  
Free Market ◽  
Trade In Services ◽  
Negative Effects ◽  
Economic Relations ◽  
Trade Relations ◽  
Goods And Services ◽  
Cross Border ◽  
Polish Economy ◽  
Trade And Investment ◽  
Cross Border Cooperation

The main directions of development of Ukrainian-Polish trade relations are considered in the article. The positive and negative effects of cross-border cooperation in trade and investment are substantiated, as well as a number of recommendations for building mutually beneficial relations on the basis of national interests.The purpose of this article is to assess the Ukrainian-Polish trade and economic relations in modern conditions in order to form scientifically sound recommendations for the development of mutually beneficial cross-border cooperation, taking into account national interests.Research methods. Methods of scientific analysis are used in the critical assessment of the concept of free market and free trade; comparison in the study of the dynamics of Ukrainian-Polish trade relations; graphical method for displaying and comparing trade in goods and services and investment between Poland and Ukraine; method of generalization in the development of proposals to improve the efficiency of cross-border trade and investment between countries, taking into account national characteristics and interests.Results. An assessment of Ukrainian-Polish trade and economic relations over the past ten years is given. It is proved that Ukrainian-Polish relations in the field of trade in goods do not have significant benefits for the Ukrainian economy, as their balance is negative during the period under study. Emphasis is placed on mutual exits in the field of trade in services, where the Polish side actively uses Ukrainian enterprises to order services for processing material resources through cheap labor, which stimulates the inflow of funds into Ukrainian business, job creation and more. There is a significant predominance of Polish investment in the national economy over Ukrainian investment in the Polish economy, due to the higher development of the Polish economy and interest in building branches and subsidiaries of Polish enterprises.A number of measures have been proposed to increase the economic complexity of the domestic economy in order to increase technological exports to Poland and equalize the trade balance between the countries; the directions of development of trade in services (in particular medical services in the conditions of COVID-19), as well as measures to increase the volume of Polish investment are substantiated.

scholarly journals The Socio-Economic Development of Cross-Border Territories: Statistical Monitoring

2018 ◽  
Vol 80 (1) ◽  
pp. 61-67
Author(s):  
О. М. Motuzka ◽  
V. V. Parkhomenko
Keyword(s):  
Economic Development ◽  
Information Needs ◽  
Market Competition ◽  
Global Market ◽  
Border Region ◽  
Goods And Services ◽  
Border Regions ◽  
Cross Border ◽  
Statistical Monitoring ◽  
Socio Economic Development

Because the methodology for studying the socio-economic development of cross-border territories is still poorly developed in the Ukrainian science, this study aims to highlight its theoretical essence and justify the need for statistical monitoring and identification of practical problems related with its applications at personal, institutional and regional level.   Given the global market competition, the socio-economic development of cross-border territories is impossible without creating favorable financial, institutional and infrastructure environment. The socio-economic development of cross-border territories is determined by a set of indicators reflecting the capabilities of territories located on both sides of the border to produce a certain output of goods and services using the available human and material resources.    The importance of cross-border statistics grows with the expansion of cross-border cooperation. Cross-border statistics refers to the generalized information on the socio-economic development of cross-border territories; it has to support the CBC-related operation of central and local administration bodies and private entities in border regions, aimed at expanding business partnerships and meeting public needs on border territories. The source of data for cross-border statistics is the statistics of border regions. The analysis shows that trial decisions used now in the Ukrainian statistics system for testing border region statistics, such as statistics of tourism, including travels abroad, are not capable to meet information needs of the regional development policy, foreign trade statistics and statistics of internal and external migration. The statistics of cross-border regions has to face the following challenges:  improve the comparability of statistical indicators by harmonizing statistical surveys’ methodology, terminology, definitions and classifications; expand and improve printing and publishing activities; develop analytical work; introduce and develop cross-border surveys; construct on-line cross-border database.

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