Excise Tax Research Articles

The Urgency of Sugar Sweetened Beverages Excise Policy: A Literature Study for Implementation in Indonesia

Diabetes diseases should become an alert for all people around the world, including Indonesia. Being one of the ten diseases that are classified as dangerous diseases, diabetes is estimated to infect 700 million people by 2045. Strategic steps must be taken by the Indonesian government, one of them is through the implementation of fiscal policy on the collection of Sugar Sweetened Beverages (SSB) Excise. Using secondary sources data through literature review by looking for information about countries that have implemented the SSB Excise, this paper goals are to analyze the urgency of implementing a SSB Excise that can be applied by the Indonesian government, by reflecting on the implementation of policies that have been implemented in other countries around the world. This paper is limited to the number of extensive and in-depth related research, and still not describe yet using a full detail research method about the evidence which related to the urgency of this excise policy, so it would be beneficial for other researcher, especially in Indonesia who would make it depth. The result of this paper is that the SSB Excise policy is appropriate and should be implemented in Indonesia, in the form of implementing the Excise Tax in the sugar sweetened beverage industry, which can imitate the excise policies of the UK & Thailand. So that the results of this SSB Excise revenue can be earmarked for the benefit of overcoming health costs caused by diabetes, as well as improving health-based public facilities.

Tobacco industry in Mexico: a general equilibrium analysis

ObjectiveEffects of tobacco taxation on employment in Mexico are measured by using an applied general equilibrium model.MethodsThe study describes the modelling methodology based on a 2013 social accounting matrix for...

Excise Taxation To Preserve Health and To Protect the Environment: A Review

Excise duties continue to be coveted sources of revenue, particularly in developing countries, because they are easy to collect and cause few economic distortions. In developed economies, on the other hand, excise duties are increasingly considered useful instruments for enhancing social and market outcomes by internalizing the financial, physical, and psychological costs that abusive consumers and producers impose on other people (that is, external costs) and, unintentionally, on themselves (that is, internal costs). By internalizing these costs in the price of goods and thereby confronting consumers with the true cost of consumption, excise duties on tobacco, alcohol, sugar, and gambling can induce these consumers to preserve the quality of their health. Similarly, excise duties on carbon, cement, transport, and plastics can correct for the human-induced degradation of the environment. In this paper, the author identifies the revenue-raising and externality- and internality-correcting features of excise taxation and reviews, in this context, some of the main developments and issues encountered in subjecting particular excisable goods and services to excise taxation.

The Effects of Alcohol Excise Tax Increases by Drinking Level and by Income Level

The Effects of Alcohol Excise Tax Increases by Drinking Level and by Income Level

ПОТЕНЦІАЛ АКЦИЗНОГО ОПОДАТКУВАННЯ У ФОРМУВАННІ БЮДЖЕТНИХ РЕСУРСІВ

The availability of budgetary resources is an essential condition for certain functions and tasks of social development proper performance by the state and local self-government bodies. Excise taxes play a significant role in the state and local budgets of Ukraine resources formation process. Their role is especially increasing in the conditions of instability, destructive consequences of the war, destruction of infrastructure, growing need for social and investment allocations from the budget. And this leads to the debt burden increase and deepening budget imbalances. The purpose of the article is to determine the excise taxation potential essential characteristics and identify the relationship between its total potential and the budgetary resources formation in modern conditions. Interpretation of concepts is analyzed: financial potential, financial resources, budget resources. The concept of "the potential of excise taxation" is defined. It is shown that the potential of excise taxation is dialectically connected with budgetary resources and is most fully revealed in the systemic unity of fiscal, regulatory, social, environmental potential. Factors influencing the strengthening and realization of the excise taxation potential are outlined. Budget imbalances in absolute and relative terms are characterized. The role of the excise taxation potential in softening imbalances in process of budgetary resources formation has been identified. It is concluded that in order to strengthen and fully reveal the potential of excise taxation in the formation of budgetary resources, measures of state financial regulation are important, which will reduce the vulnerability of the fiscal system to endogenous and exogenous factors. Assessment of budget imbalances caused by insufficient disclosure of the potential of excise taxation should be carried out taking into account the temporal, territorial and institutional aspects. The importance of taking into account subjective factors regarding the realization of the potential of excise taxation in the formation of budgetary resources is noted.

The Amount of Excise Tax and its Effect on the Consumption of Alcohol and Cigarettes in European Countries

The Amount of Excise Tax and its Effect on the Consumption of Alcohol and Cigarettes in European Countries

The Effects of Alcohol Excise Tax Increases by Drinking Level and by Income Level

The Effects of Alcohol Excise Tax Increases by Drinking Level and by Income Level

Differentiated Excise Taxation in the Beer Market

This paper studies excise tax policy that applies different tax rates to differentiated products. We propose a general method, from the revealed preferences perspective, that allows the identification of the policy maker’s unobserved preferences when setting excise tax rates. We use it to evaluate excise beer tax policy in the Canadian province of Ontario, which differentially taxes local craft beer and large manufacturers’ beer. We identify the government’s preferences over the total surplus and net externalities associated with the production and consumption of different types of beer products. The results show that the government believes the positive externality associated with the production of local craft beer, outweighs the negative externality associated with its consumption, whereas it goes the other way around for large manufacturers’ beer. This means that the government’s subjective per-litre cost of reducing the equilibrium consumption through local craft beer is significantly higher than through the large manufacturers’ beer. The observed gap in excise taxes is aligned with the discrepancy in the percentage decreases in equilibrium quantities of two types of beer with respect to a dollar increase in own excise tax, respectively, given different beer market sizes. We also identify the increasing share of local craft beer consumption with respect to household income as a unique source of the regressiveness of the differentiated excise taxes. The regressiveness does not seem large in terms of the extra tax payment imposed on lower-income households even though the regressiveness of the effective tax rate itself is not insignificant.

Formation of a System of Excise Taxes in the Central Asian Outskirts of the Russian Empire (second half of the 19th – early 20th centuries)

Formation of a System of Excise Taxes in the Central Asian Outskirts of the Russian Empire (second half of the 19th – early 20th centuries)

How to Apply Excise Taxes to Fight Obesity

How to Apply Excise Taxes to Fight Obesity

Ethanol production in the United States: The roles of policy, price, and demand

Assessments of the impact of the U.S. renewable fuel standard (RFS) should inform consideration of future biofuels policy. Conventional wisdom suggests the RFS played a major role in stimulating the ten-fold expansion in ethanol production and consumption in the United States from 2002 to 2019, but evidence increasingly suggests the RFS may have had a smaller effect than previously assumed. Price competitiveness, federal and state policies such as reformulated gasoline requirements, and octane content in ethanol also affect ethanol market attractiveness. This study explores the roles of policy and economic factors by comparing historical data with results from scenarios simulated in a system dynamics model. Results suggest price competitiveness may explain much of the growth in the ethanol industry from 2002 to 2019. The Volumetric Ethanol Excise Tax Credit and phaseout of the oxygenate methyl tert-butyl ether contributed to earlier growth relative to expected timing of growth based on fuel price alone. The RFS (modeled through observed Renewable Identification Numbers) contributed to increased ethanol production in later years and may have increased production in the earlier years if risk of investment was decreased by the RFS Program.

Sugar-Sweetened Beverage Pricing Policies: Simulation of Minimum Price Laws and Taxes in New York City

Minimum price laws, which set a price below which a product cannot be sold, are a promising but understudied strategy for reducing the consumption of sugar-sweetened beverages. New York City has implemented a minimum price law for tobacco products and could consider this policy for sugar-sweetened beverages. This study projects the impacts of a sugar-sweetened beverage minimum price law among New York City adults, with effects of a sugar-sweetened beverage excise tax examined for comparison. In 2020-2021, a microsimulation model of dietary behaviors and body weight was developed using population-based survey data, research on responsiveness to and avoidance of price increases, and a validated weight change model. Analyses applied the model to simulate the impacts of implementing a minimum price law (8 or 10 cents/ounce price floors) or an excise tax (1 or 2 cents/ounce tax rates) on diet and body weight among New York City adults for more than 5 years. Sensitivity analyses varied assumptions about price responsiveness, caloric compensation, and avoidance. A sugar-sweetened beverage minimum price law with an 8 cents/ounce floor would reduce average sugar-sweetened beverage intake by 16.5 calories/day (95% uncertainty interval= -17.2, -15.8) and obesity prevalence by 0.86 percentage points (95% uncertainty interval= -1.03, -0.69). Benefits were similar for a minimum price law with a 10 cents/ounce floor and for 1 and 2 cents/ounce taxes (range of obesity reductions: -0.84 to -1.24 percentage points). Benefits persisted in sensitivity analyses and were larger for Black and Hispanic than for White and Asian adults and for adults with lower than for those with higher income. Excise taxes and minimum price laws for sugar-sweetened beverages could both reduce New York City adults' sugar-sweetened beverage consumption and obesity prevalence and narrow sociodemographic disparities in obesity.

Philadelphia's Excise Tax on Sugar-Sweetened and Artificially Sweetened Beverages and Supplemental Nutrition Assistance Program Benefit Redemption.

Objectives. To assess the effect of a 2017 excise tax on sugar and artificially sweetened beverages in Philadelphia, Pennsylvania, on the shopping patterns of low-income populations using Supplemental Nutrition Assistance Program (SNAP) data. Methods. I used a synthetic controls approach to estimate the effect of the tax on Philadelphia and neighboring Pennsylvania counties (Bucks, Delaware, and Montgomery) as measured by total SNAP sales ("SNAP redemption") and SNAP redemption per SNAP participant. I assembled biannual data (2005-2019) from all US counties for SNAP redemption and relevant predictors. I performed placebo tests to estimate statistically significant effects and conducted robustness checks. Results. Detectable increases in SNAP spending occurred in all 3 Philadelphia neighboring counties. Per-participant SNAP spending increased in 2 of the neighboring counties and decreased in Philadelphia. These effects were robust across multiple specifications and placebo tests. Conclusions. The tax contributed to increased SNAP shopping in Philadelphia's neighboring counties across both outcome measures, and decreased spending in Philadelphia (at least by 1 measure). This raises questions about retailer behavior, the effectiveness of the tax's public health aim of reducing sugar-sweetened beverage consumption, and policy aims of investing in low-income communities. (Am J Public Health. 2021;111(11):1986-1996. https://doi.org/10.2105/AJPH.2021.306464).

A Synthetic Control Analysis of Philadelphia, Pennsylvania’s Excise Tax on Sugar-Sweetened and Artificially Sweetened Beverages and Supplemental Nutrition Assistance Program Benefit Redemption

Objectives: To assess the effect of a 2017 excise tax on sugar and artificially-sweetened beverages in Philadelphia, Pennsylvania on the shopping patterns of low-income populations using Supplemental Nutrition Assistance Program (SNAP) data. Methods: A synthetic controls approach was used to estimate the effect on Philadelphia and neighboring Pennsylvania counties (Bucks, Delaware, Montgomery) as measured by total SNAP sales (“SNAP redemption”) and SNAP redemption per SNAP participant. Biannual data (2005-2019) were assembled from all US counties for SNAP redemption and relevant predictors. Placebo tests were performed to estimate statistically significant effects, and robustness checks were conducted. Results: Detectable increases in SNAP spending were observed in all Philadelphia neighbors. Increases in per-participant SNAP spending were detected in two neighbors, and a decrease was detected in Philadelphia. These effects were robust across multiple specifications and placebo tests. Conclusions: The tax contributed to increased SNAP shopping in Philadelphia’s neighbors across both outcome measures, and decreased spending in Philadelphia (at least by one measure). This raises questions about retailer behavior, the effectiveness of the tax’s public health aim of reducing SSB consumption, and policy aims of investing in low-income communities.

The Application of Joint Liability in the Excise Tax on Tobacco Products and Alcoholic Beverages and the Issue of Taxation Power

Tütün ürünleri ve alkollü içkiler sektörü Türkiye ekonomisine değişik kanallardan katkı sağlayan bir sektördür. Tütün ürünleri ve alkollü içkiler üzerinden sağlanan vergi gelirleri ise bu sektörün en temel ekonomik katkısıdır.
 Ülkemizde, tütün ve alkol ürünlerinde ortaya çıkan vergisiz yani kaçak kullanımın önlenmesi amacıyla bir takım tedbirler alınmıştır. Bu çerçevede tütün mamulleri ve alkollü içkiler için bandrol ve kod (biralar için) uygulaması zorunluluğu getirilmiştir. Bu zorunluluğa uyulmasını sağlamak amacıyla 4760 sayılı Özel Tüketim Vergisi Kanunu’nun 13. maddesinin (5) numaralı fıkrası ihdas edilmiştir.
 4760 sayılı Kanun’un 13. maddesinin (5) numaralı fıkrası kapsamındaki eşyanın ele geçirilmesi durumunda özel tüketim vergisine ilişkin işlemlerin Gelir İdaresi Başkanlığı’nca tesis edileceği anlaşılmaktadır. Hal böyle olunca ithalattan kaynaklanan özel tüketim vergisini tarh ve takip etme yetkisinin Gümrük İdaresi’ne ait olması nedeniyle yasa dışı yollardan ithal edilen gümrük kaçağı tütün mamulleri ve alkollü içkilere ilişkin 4760 sayılı Kanun’un 13. maddesinin 5. fıkrası uyarınca özel tüketim vergisi tarhiyatı yapmaya yetkili idarenin hangisi olduğu hususunda tereddüt oluşmuştur. Bu tereddüt, Danıştay ve idari yargı kararlarına da yansımıştır. Ayrıca ilgili Kanun maddesi, hukuki belirlilik ilkesini ihlal ettiği gerekçesiyle Anayasa’ya aykırılığı ileri sürülerek Anayasa Mahkemesi nezdinde iptal davasına konu edilmiştir.
 Bu çalışmada, yukarıda yapılan açıklamalar çerçevesinde tütün mamulleri ve alkollü içkilerin kaçak olarak yurda sokulması durumunda 4760 sayılı Kanun’un 13. maddesinin (5) numaralı fıkrasında öngörülen müteselsil sorumluluk uygulaması ve müteselsil sorumluluk kapsamında özel tüketim vergisi ile ilgili işlemleri tesis edecek yetkili idare sorunu incelenmiştir.

Optimal Excise Tax on Indonesia's Unhealthy Food

A recent report by Indonesia's Ministry of Health shows that diabetes prevalence is doubled in the last decade, and it happens globally. Unhealthy food consumption is alleged to be the cause, and imposing taxes on unhealthy food to reduce its consumption. This study aims to analyze optimal taxation for unhealthy foods as a policy alternative to reduce the surge increase of diabetes in Indonesia. The study analyzes Indonesian consumption data on several types of food that fall into the unhealthy category by the World Health Organization. By estimating household demand for unhealthy food using the Almost Ideal Demand System (AIDS) and categorizing them based on income, we could simulate the optimal tax rate for unhealthy food and contemplate the pros and cons. The findings identified three food groups that fall into the unhealthy category: snacks, instant noodles, and processed meat, and all the groups have inelastic demand elasticity. Applying the Ramsey rule, this study estimates the optimal tax rate for each food at 12-13% and can increase the state revenue by IDR 4 trillion annually. Nevertheless, it is noteworthy that most instant noodle consumers were households in the bottom 40% of incomes, contrary to snacks and processed meat. The study advises considering income distribution when the excise tax will be applied by looking at a combination of food demand analysis with a tax-imposition simulation.

Assessment of TRAIN’s Coal and Petroleum Excise Taxes: Environmental Benefits and Impacts on Sectoral Employment and Household Welfare

This study assessed the impact of the first package of the Tax Reform for Acceleration and Inclusion (or TRAIN) Law, which includes an increase in petroleum and coal excise taxes, as passed by Congress in 2017. This study reviewed the context of the energy sector in the country given that petroleum and coal are the largest sources of energy in the country. Using a computable general equilibrium-microsimulation model, it mainly assessed the impact of this increase and of the whole TRAIN 1 package (which includes a reduction in the personal income tax and the broadening of the value added tax). The results from the simulations show that there is a slight adverse output effect for most industries under an increase in petroleum and coal taxes scenario, resulting in a lower level of carbon emissions. There is a slight decline in employment, and poverty incidence increased slightly as excise taxes have an adverse effect in terms of higher commodities prices among the poor.

Impact of the 2020 Pandemic on Revenue from Various Taxes in the Russian Regions

The article investigates the impact of the 2020 pandemic on tax revenues of Russian regions at the stages of their collection and allocation to regional budgets. To exclude the influence of the seasonal component and uneven receipts of various taxes to the budget, the moving annual tax revenues were calculated with a shift of one month. Based on these data for 2013-March 2020, linear time regressions were built and decomposed into 8 taxes and tax groups. These regressions were used to predict non-pandemic tax revenues for different regions in April-December 2020. The impact of the pandemic on the regional tax losses (gains) and their decomposition by sources was calculated through the deviation of the actual revenues from their predicted non-pandemic values on an accrual basis until the end of 2020. We found that the pandemic had led to losses of 13.9 % of total tax revenues in the country and 6.2 % of regional budgets’ own tax revenues. The mining regions are the most affected by the pandemic. On the contrary, in some Far Eastern regions, there is an abnormal increase in tax collections. The largest contribution to the decrease in tax revenues at the consolidated and federal levels was made by the MET receipts; they fell sharply due to lower prices and volumes of oil and gas. However, the negative effect of this decrease at the federal level was dampened by stabilizing VAT receipts. Excise taxes played a positive role in mitigating pandemic risks. The tax distribution system has shown its equalizing function when allocating tax revenues to sub-federal budgets. The largest negative contribution to the change in regional tax revenues during the 2020 pandemic was made by the corporate income tax, while the negative impact of property taxes and special tax regimes turned out to be less significant. Personal income tax has proven to be the main damper of tax revenues at the regional level. The results obtained are applicable to the management of the state fiscal revenues during pandemic crises

Assessment of TRAIN’s Coal and Petroleum Excise Taxes: Environmental Benefits and Impacts on Sectoral Employment and Household Welfare

Assessment of TRAIN’s Coal and Petroleum Excise Taxes: Environmental Benefits and Impacts on Sectoral Employment and Household Welfare

South Africa's Health Promotion Levy: Excise tax findings and equity potential.

SummaryIn 2016, the South African government proposed a 20% sugar‐sweetened beverage (SSB) tax. Protracted consultations with beverage manufacturers and the sugar industry followed. This resulted in a lower sugar‐based beverage tax, the Health Promotion Levy (HPL), of approximately 10% coming into effect in April 2018. We provide a synthesis of findings until April 2021. Studies show that despite the lower rate, purchases of unhealthy SSBs and sugar intake consumption from SSBs fell. There were greater reductions in SSB purchases among both lower socioeconomic groups and in subpopulations with higher SSB consumption. These subpopulations bear larger burdens from obesity and related diseases, suggesting that this policy improves health equity. The current COVID‐19 pandemic has impacted food and nutritional security. Increased pandemic mortality among people with obesity, diabetes, and hypertension highlight the importance of intersectoral public health disease‐prevention policies like the HPL, which should be strengthened.