Excise Tax Rates Research Articles

Analysis of Performance Measurement of Tobacco Excise Revenue Using Value for Money Method

In 2020-2023 many sectors, especially the economy, were affected during and after the COVID-19 pandemic in Indonesia. The Ministry of Finance continued to increase excise tax rates on tobacco products from 2020 to 2024. This policy is expected to increase state revenue and reduce underage cigarette consumption. If the excise tax on tobacco products increases, the selling price will increase. This will lead to the spread of illegal cigarettes, which will interfere with state revenue. In this study, the value for money method is used to evaluate the performance of tobacco excise revenue using economic, effective, and efficient indicators. This research uses a quantitative description with a period of years. 2020 - 2023. The results of this study analyzed in terms of economics from 2020 to 2023 fluctuated with an average value of 96,97%. The results of the analysis in terms of efficiency from 2020 to 2023 experienced consistency with an average value of 100,00%. The results of the analysis in terms of effectiveness from 2020 to 2023 show that during this period, the performance value remained stable in a very close range with an average value of 100,10%.

Efektifkah Kenaikan Tarif Cukai Rokok Elektrik Cair Sistem Terbuka bagi Industri Rokok Elektrik?

Liquid e-cigarettes have become a popular new form of addictive tobacco products. The increasing prevalence of e-cigarette and smoking behaviors has led the government to increase tobacco tax rates every year. While this policy boosts state revenues, it also poses challenges for conventional and e-cigarette businesses, including tobacco farmers. Excise tariffs for liquid e-cigarettes are divided into open and closed system types, with the method of filling the liquid is the key distinction. Users can manually refill the open system, the closed system cannot be refilled. Despite both containing cigarette liquid, the percentage of raising excise taxes is higher for the open system than the closed system. This study aims to evaluate the effect of the increase of excise taxes on business competition between open and closed systems of liquid e-cigarettes. Using descriptive analysis, literature review, and a basic quantitative approach, this study found that differences in excise tax rates on e-cigarettes encourage competition and create unequal treatments. The higher excise tax on open systems has created a polemic in sustainability of small entrepreneurs in the tobacco sector. The role of the government as a regulator is very important in ensuring fair and responsive policies in order to create conducive business competition between open and closed system liquid e-cigarettes.

Unlocking the potential: Key factors shaping the liquid biofuels market in Ukraine

This article examines the development of Ukraine's liquid biofuels market, driven by the need to diversify its fuel supply amidst complete reliance on imported fuels for road transport. The country also faces challenges exporting agricultural feedstock for first-generation biofuels due to geopolitical disruptions since early 2022. In response, the production and use of liquid biofuels represent a strategic move to reduce dependence on fossil fuels while fulfilling international obligations, including the ones within the Energy Community and the European Union (EU). Ukraine must align with the EU's renewable energy targets as a candidate for EU accession. Using the methods of fuel consumption quantification, blending mandate assessment, and excise tax rate calculation framework, the article finds that the potential market demand for bioethanol in Ukraine is projected to range from 125 to 278 thousand tonnes and for biodiesel from 196 to 431 thousand tonnes in 2025-2031. Ukraine's biofuel production potential could reach 2.54 million tonnes of oil equivalent by 2050, with advanced biofuels expected to dominate. Current excise tax rates for bioethanol are considered appropriate and supportive of market growth. To foster further development, legislative amendments are needed to mandate biodiesel blending, along with awareness campaigns highlighting the benefits of biofuels. Additionally, vehicles using high biofuel blends should receive incentives similar to those of electric vehicles, such as access to preferential parking.

Balanced Approach Regulatory Measures for Excise Tax on Tobacco and Nicotine-Based Products with Differential Degrees of Harm

This paper reports a study that analyses regulatory measures for excise tax on tobacco and nicotine-based products in Malaysia.The study highlights current non-optimal nature of excise tax due to a lack of differentiation between the varying degrees of harm caused by different tobacco and nicotine-based products within a given category. The study aims to address this issue by proposing a regulatory measure that adopts a balanced approach to taxing harmful tobacco and nicotine-based products. A focus group discussion involving a group of experts in tax and excise tax, medical and pharmacology, and law and policy was conducted to gather expert inputs on policy compliance with international standards for excise tax on tobacco and nicotine-based products; effectiveness of current policies in addressing harm differentials; and setting excise tax rates to balance harm levels and combat illicit trade. This study concludes that, Malaysia should adopt a balanced approach regulatory measures to combat illicit tobacco trade and promote harm reduction and equitable public health outcomes.This study recommends a differentiated excise tax for tobacco products in Malaysia based on harm and addiction levels, aiming tobalance the excise-duty with differential degrees of harm and optimize policy effectiveness towards achieving a smoke-free Malaysia by 2040. The proposed recommendation is aligned with Article 6 Guidelines of the World Health Organization Framework Convention on Tobacco Control.

Balancing the books: unveiling the direct impact of an integrated energy system model on industries, households and government revenues

BackgroundThe transition towards a sustainable energy system is reshaping the demand for final energy, driven by the diffusion of new end-use technologies. This shift not only impacts consumers’ energy expenses, but also holds implications for the public budget. Building on data from a German energy transition scenario, we analyse the direct impact of energy costs on industries, low-income households, and changes in government revenues from the taxes and levies on final energy carriers. Our analysis considers the impact of current policies and explores a scenario introducing additional excise tax rates to offset potential revenue losses.ResultsWe found that substantial carbon price increases could generate revenues that offset the losses from excise taxes on fossil fuels while enabling the financing of renewable support from the public budget by the end of this decade. Nevertheless, a decline in government revenues from taxes and levies is anticipated after 2030 until the middle of the century due to the declining use of fossil fuels. Maintaining current excise tax revenues during the transition could be achieved by introducing additional excise taxes on fossil fuels and electricity. Lastly, our analysis indicated a continuous decline in household energy expenditures until 2050, whereas energy-intensive industries face adverse impacts due to decarbonisation.ConclusionsThis research provides valuable insights into the fiscal implications of the energy transition, shedding light on different industrial sectors and households while considering the evolving impact on the public budget. Policymakers may need to consider systemic reforms or alternative financing mechanisms outside the energy system to balance the books.

Excise Tax, Education, And Income Factors: Impact On Cigarette Consumption

Tobacco consumption remains high despite its numerous negative impacts. In this study, the author aims to identify the variables influencing cigarette consumption This study aims to identify the variables influencing cigarette consumption. The independent variables include excise tax rates, gross tertiary education enrollment, and per capita income. This research employs a quantitative method utilizing panel data regression in all provinces of Indonesia for 2018-2022. The results indicate that both excise tax rates and per capita income postively impact cigarette consumption. Gross tertiary education enrollment, on the other hand, are the sole variable exhibiting a negative influence on cigarette consumption. This study contributes to existing research literature and offers potential avenues for further investigation.

The Effect of an Alcohol Excise Tax Rate Increase on DUI Incidents, Evidence from Connecticut

The Effect of an Alcohol Excise Tax Rate Increase on DUI Incidents, Evidence from Connecticut

АНАЛИЗ И СОВЕРШЕНСТВОВАНИЕ АКЦИЗНОЙ ПОЛИТИКИ РОССИЙСКОЙ ФЕДЕРАЦИИ В ОТНОШЕНИИ АЛКОГОЛЬНОЙ ПРОДУКЦИИ

The article analyses the measures of the state anti-alcohol policy of modern Russia in the field of taxation and assessment of their impact on the receipt of excise taxes in the budget of the Russian Federation and the level of consumption of alcoholic beverages by the adult population of the country. Particular attention is paid to the study of the excise policy of the Russian Federation in relation to alcoholic beverages. Excise taxation is one of the effective instruments of state regulation of the production and consumption of alcoholic beverages. The purpose of the study is, based on the analysis, to develop recommendations for changing excise tax rates on various types of alcoholic products to enhance the fiscal potential of excise taxes and regulate alcohol consumption by the country's population. The study was carried out using methods of systematic comparative analysis of domestic and foreign literature and statistical data, as well as generalization and synthesis. It highlights the structure and dynamics of excise tax revenues to the budget of the Russian Federation by type of alcoholic beverages. It also considers restrictive measures relating to the production, sale and consumption of alcoholic beverages in Russia, as well as options for tax support for domestic producers of low-alcohol drinks. A study of the dynamics of the volume and structure of consumption of alcoholic beverages by the population showed the high effectiveness of government regulatory measures, including excise taxation instruments. However, despite the identified reduction, the level of alcohol consumption by the population of the Russian Federation remains high, which raises the need to improve excise policy in the field of taxation of alcoholic products. The increase in excise tax rates on strong alcohol and a change in the method of levying excise tax on beer proposed by the authors will ensure annual additional excise tax revenues to the budget, will lead to a reduction in the consumption of alcoholic beverages and a shift in consumer preferences towards low-alcohol drinks that cause less harm to human health.

The Role of Excise Tax Rates, Selling Prices, and Economic Indicators on Cigarette Consumption

High cigarette consumption not only hurts public health but also indirectly affects the economy of the country. The high selling prices currently in effect do not force low-income families’ people to reduce their consumption levels daily. Therefore, this study examines the overall role of excise tariffs, retail selling prices, poverty level, and income on the consumption pattern of cigarettes in Kediri during 2018-2022 both simultaneously and partially. It used the quantitative, method with secondary data in the form of data obtained from the National Statistic Agency, East Jawa Provincial Statistic Agency, and data from government agencies, KPPBC TMC Kediri for the period.

The Cost of Living Index as a Primary Driver of Homelessness in the United States: A Cross-State Analysis.

Homelessness persists as a critical global issue despite myriad interventions. This study analyzed state-level differences in homelessness rates across the United States to identify influential societal factors to help guide resource prioritization. Homelessness rates for 50 states and Washington, DC, were compared using the most recent data from 2020 to 2023. Twenty-five variables representing potential socioeconomic and health contributors were examined. The correlation between these variables and the homelessness rate was calculated. Decision trees and regression models were also utilized to identify the most significant factors contributing to homelessness. Homelessness rates were strongly correlated with the cost of living index (COLI), housing costs, transportation costs, grocery costs, and the cigarette excise tax rate (all: P < 0.001). An inverse relationship was observed between opioid prescription rates and homelessness, with increased opioid prescribing associated with decreased homelessness (P < 0.001). Due to collinearity, the combined cost of living index was used for modeling instead of its individual components. Decision tree and regression models identified the cost of living index as the strongest contributor to homelessness, with unemployment, taxes, binge drinking rates, and opioid prescription rates emerging as important factors. This state-level analysis revealed the cost of living index as the primary driver of homelessness rates. Unemployment, poverty, and binge drinking were also contributing factors. An unexpected negative correlation was found between opioid prescription rates and homelessness. These findings can help guide resource allocation to address homelessness through targeted interventions.

Partisan Politics and Excise Tax Rates in the United States

The literature on excise tax rates has provided mixed evidence concerning how partisan ideology affects tax changes. Using a regression discontinuity design and a panel of U.S. states over the period 1970–2019 I find no significant difference in cigarette, distilled spirits, or gasoline excise tax rates between Democratic governors and Republican governors elected by a similar margin. This result is found regardless of whether the governor can run for an additional term or faces a binding term limit. These results are robust to an analysis of the post-southern realignment period, when controlling for southern Democrats, or when analyzing open elections without an incumbent in the running. An implication of this result is that interstate tax competition and the mobility of the tax base dwarfs any ideological differences with respect to excise tax policy.

Financial Regulation of the Import of Cars in the Russian Federation

The article discusses the financial and customs method of state financial regulation in the Russian Federation in terms of imports of cars. The study examined the dynamics of customs duty rates for customs operations, VAT for cars, excise tax rates, statistics on imports of cars for the period 2017–2022. in RF. Within the framework of the analyzed period, the main trends in the customs regulation of imports of passenger cars are characterized, the problems of financial and customs regulation associated with the aggravation of the geopolitical and economic situation in the country are studied. General logical methods (analysis of publications, comparison, generalization) and empirical methods (description, measurement, analysis of statistical data) were used as research methods. The authors provided recommendations to improve the state financial regulation of the import of cars in the current conditions, including improving the mechanism for controlling the movement of goods, increasing the rates of recycling fees, introducing new technical requirements for cars, creating a common electronic and digital platform for the interaction of customs, tax and other state bodies. We found that it is necessary to use an integrated approach to financial and customs regulation.

Impact of Excise Tax on Reducing Tobacco Consumption – The Case of Vietnam

With rising tobacco consumption around the world, particularly in Vietnam. The essay examined and evaluated the excise duty on cigarettes in Vietnam. Moreover, the author developed a research model based on elements influencing tobacco consumption behavior, such as GDP, population, inflation, and excise tax rates. Besides, the authors discovered shortcomings in the current Vietnamese tax system after reviewing documents and data, such as the tax rate being too low in comparison to people's income and the taxable price being currently factory pricing. As a result, the essay provides important ideas for pushing the reform of Vietnam's tobacco excise tax policy in the next few years.

Interdisciplinary Forensic and Pharmaceutical Study of Illegal Circulation of Falsified Alcoholic Beverages to Combat Crime and Prevent Public Health Disorders

Forensic and pharmaceutical study of the illegal circulation of falsified (counterfeit, surrogate, counterfeit, modified) alcoholic beverages was conducted within the framework of interdisciplinary organizational and legal, criminal and legal, forensic, clinical and pharmacological, forensic and medical research. It was substantiated that the illegal circulation of falsified alcoholic beverages harms the country's budget, the lives and health of citizens. Summarized reports of the State Tax Service of Ukraine. Forensic-pharmaceutical practice regarding illegal circulation and medico-pharmaceutical consequences of consuming falsified alcoholic beverages is analyzed. Excise tax rates for alcoholic and low-alcohol beverages have been worked out. Normative initiatives have been developed and directions for the implementation of the anti-alcohol policy in the state have been proposed.

ACTUALITIES OF EXCISE TAXATION HARMONIZATION OF ENERGY PRODUCTS IN THE EU AND UKRAINE

Introduction. The legal framework for tax administration is one of the important components of the harmonization of Ukrainian legislation with EU standards. The area of taxation of energy products is especially relevant today, because with the Russian invasion in Ukraine, there is a total deficit and an increase in prices for energy products. Instead, the taxation of such goods is the least harmonized with EU standards among of all excise goods. The unification of excise tax rates on energy products with the requirements of the relevant EU directive can further provoke the price growth, which is extremely undesirable in the current situation. The purpose of the article is to generalize scientific and legal approaches to the characteristics of excise taxation of energy products, to outline problematic aspects of the harmonization of the relevant directive in this area, to develop proposals for improving excise taxation of energy products in Ukraine. Results. The main provisions of Council Directive 2003/96/EC on excise taxation of energy products are analyzed. It has been established that the norms of the Tax Code of Ukraine do not comply with the provisions of this directive in terms of: the list and structure of energy products, which are the subject to excise tax; the amount of tax rates; provision of tax preferences. Probable directions for reforming the EU legislation on excise taxation of energy products are outlined. Monitoring of legislative activities on taxation of energy products in Ukraine was carried out. Conclusions. As a result of the research, the conclusion is substantiated that at the current stage, the tax policy in the field of excise taxation of energy products, focused on the socio-economic realities of Ukraine, will be more justified than on the priorities of harmonization to EU standards. However, in order for Ukraine's European integration progress not to slow down due to the lack of reforms in terms of harmonization of the studied area, it is necessary to hold a number of consultations with EU institutions regarding the postponement of key issues of taxation of energy products

Harmonization of State E-cigarette and Cigarette Excise Taxes: Association with U.S. State Tobacco Control Interventions

Introduction Excise taxes have proved to be a powerful mechanism to lower demand for tobacco products. The purpose of this study was to summarize current combusted and e-cigarette excise taxes by state, and assess whether harmonization of combusted cigarette and e-cigarette excise taxes is more likely to occur in states comprehensive tobacco control approaches. Methods We compiled excise tax data on e-liquids (whether the state had any e-cigarette excise taxes) and cigarettes (percent of excise tax of total price in dollars per pack of 20) as of September 2022 for all states and the District of Columbia. We derived an index of combusted cigarette/e-cigarette harmonization by classifying excise tax proportion for cigarettes by median split (1/0), and whether a state had any e-cigarette excise tax (1/0). Harmonization was observed when the top (1/1) or bottom (0/0) matched. We used analysis of variance to determine whether the harmonization of cigarette/e-liquid excise taxes differed according to states’ adoption of tobacco control policies and expenditure on tobacco prevention. Results Twenty states did not apply any excise tax on e-liquids. States with harmonized, high excise taxes had the highest mean sum of tobacco control laws (M=4.4, SD=1.2) and the highest mean percent spending on prevention of the CDC recommendation (26.4%). We observed significant differences in the total number of laws (p=0.001), but not percent of tobacco prevention spending, across harmonization categories. Discussion The adoption of harmonized, high excise tax rates for combusted cigarettes and e-cigarettes is consistent with best-practice approaches for state-level tobacco control policy. However, few states have implemented high, harmonized tobacco product excise taxes, highlighting a substantial opportunity in tobacco control policy. Conclusion These findings may inform the development of U.S. federal policy on e-cigarette excise taxes, as well as support bills that aim to equalize tax rates across tobacco products.

ПОДАТКОВЕ РЕГУЛЮВАННЯ І СТИМУЛЮВАННЯ РОЗВИТКУ АВІАЦІЙНО-КОСМІЧНОГО КОМПЛЕКСУ НАЦІОНАЛЬНОЇ ЕКОНОМІКИ

The article summarizes the institutional features of taxation of the aviation and space complex by its sub-sectors and individual types of economic activity. The principles of building a tax system for aircraft manufacturing entities, the content of their benefits from VAT, corporate income tax, and land tax are highlighted. The list of their transactions, which are exempt from VAT taxation and taxed at a zero rate, has been systematized. The conditions for exemption from the payment of income tax for aircraft manufacturing entities, the requirements for the targeted use of the released funds and the principles of state control over its legality have been determined. The tax system for aviation transport enterprises has been formalized, which includes benefits from VAT, excise taxes, as well as income tax under contracts of compulsory insurance of passenger transportation of civil aviation. Differences in VAT taxation of international and domestic transportation of passengers and baggage by air transport have been established. The list of its services, which are taxed at zero VAT rate, are exempt from VAT taxation and are not subject to VAT taxation, is defined. The reasons for the application of the excise tax rate without the application of the increasing coefficient for the import and production of aviation gasoline and fuel for jet engines have been clarified. The requirements for registration of tax benefits for transactions with excise goods in terms of the use of tax invoices, excise invoices, sales contracts, etc. are highlighted. Considered possible options for paying off a tax bill for a certain amount of excise tax. The experience of tax incentives for the implementation of the national infrastructural and transport project “Air Express” through the provision of VAT benefits has been systematized. It is substantiated by directions for improving the taxation of the aviation and space complex in terms of: equalization of the tax status of aircraft construction entities and manufacturers of space equipment, the application of a reduced VAT rate for all domestic air transportation, changes in the principles of state financial control of tax benefits based on an audit of the effectiveness of their use.

Heated Tobacco as a Novelty Tobacco Product Subject to Excise Duty: A Cross-country Comparison

First prototypes of tobacco heaters were developed by the largest global tobacco companies as early as the 1980s. However, the first heat-not-burn tobacco products (not resembling the prototypes) were promoted on the market with success many years later – in 2014 in Japan, then in Switzerland, and in Italy. From the beginning, these products were offered for sale with the information that they were less risky for consumers, compared to traditional tobacco products. The first definition of novel tobacco products, which included heated tobacco products (HTPs), was part of the so-called Tobacco Directive (TPD). However, HTPs are not yet a subject to TPD norms. Therefore, each Member State is free to apply the excise tax rates to HTPs. Currently, there is a discussion in the EU on harmonizing excise tax policy also with regard to heated tobacco. The article discusses the current legal status of HTPs at the level of EU law, as well as in light of legal systems of selected Member States representing a diversified approach in the field of excise policy towards this category of tobacco products.

KAJIAN POTENSI KENDARAAN BERMOTOR MENJADI BARANG KENA CUKAI

Based on research by the Global Alliance on Health and Pollution (GAHP), the fourth largest contributor to deaths from pollution is Indonesia. The number of deaths from air pollution is not far related to the number of motorized vehicles in Indonesia, because the more motorized vehicles, the more carbon emissions are released thereby increasing air pollution in Indonesia. In-Law number 11 of 1995 concerning Excise jo. Law Number 39 of 2007, Excisable Goods stated in article 2 paragraph (1) as certain items that have characteristics of use can have a negative impact on the community or the environment. In article 4 paragraph (2), the addition or reduction of types of excisable goods is regulated further by a Government Regulation. Motorized vehicles fall into the two criteria above. This study aims to assess the potential feasibility of imposing excise duties on motorized vehicles. The research methodology was carried out using literature studies and data analysis related to excise revenue and the number of motorized vehicles in Indonesia. The results of this study recommend that motorized vehicles are eligible to become Excisable Goods. Excise tax rates can be ad valorem tariffs, following the best practices of countries that have imposed an excise tax on motorized vehicles.&#x0D; &#x0D; Keywords: extensification, excise, excisable goods, motorized vehicles, the Directorate General of Customs and Excise.

Magnitude of illicit cigarette trade in Malaysia: empirical evidence compared with industry studies

BackgroundThe tobacco industry contends that the illicit market in Malaysia occupies 62.3% of the total cigarette market. If this is true, Malaysia has one of the largest shares of illicit...