Increases In Tobacco Taxation Research Articles

On the impacts of higher tobacco taxes in Argentina: a computable general equilibrium approach

ObjectivesWe analyse the employment effects of increasing tobacco taxation in Argentina by building a computable general equilibrium (CGE) model.MethodsIn line with recent changes in tobacco taxation in the country, the...

The impact of cigarette prices on smoking onset and cessation: evidence from Vietnam

BackgroundVietnam is a country with very high smoking rates among men. According to a Global Adult Tobacco Survey (GATS) conducted in 2015, the daily smoking prevalence among Vietnamese men was...

Questioning the regressivity of tobacco taxes: a distributional accounting impact model of increased tobacco taxation

BackgroundTobacco taxes, as with other ‘sin taxes’, are generally regarded as a highly cost-effective mechanism to reduce consumption but are often considered by policymakers to be regressive, undermining efforts to...

The Health Gains, Financial Risk Protection Benefits, and Distributional Impact of Increased Tobacco Taxes in Armenia

—The majority of Armenian adult males smoke, yet tobacco taxes in Armenia are among the lowest in Europe and Central Asia. Increasing taxes on tobacco is one of the most cost-effective public health interventions, but many opponents often cite regressivity as an argument against tobacco taxation. We use a mixed-methods approach to study the potential regressivity of tobacco taxation and the extent to which the regressivity argument hindered increases in tobacco taxation in Armenia. First, we pursued an extended cost-effectiveness analysis (ECEA) to assess the health, financial, and distributional consequences (by consumption quintile) of increases in the excise tax on cigarettes in Armenia. We simulated a hypothetical price hike leading to a tax rate of about 75% of the retail price of cigarettes, which would be fully passed on to consumers. Second, we conducted a series of stakeholder interviews to examine the importance of the regressivity argument and identify the factors that allowed tobacco tax increases to be adopted as public policy in Armenia. We show that increased excise taxes would bring large health and financial benefits to Armenian households. Half of tobacco-related premature deaths and 27% of associated poverty cases averted would be concentrated among the bottom 40% of the population. Though regressivity was raised as a concern at the initial stages of the policy adoption process, our qualitative stakeholder analysis indicates that the recent accession to the Eurasian Economic Union and the fiscal constraints faced by the government created a window of opportunity for tobacco taxation to be placed on the policy agenda and adopted as government policy, and the ECEA findings were an important input into the process.

Modelling the implications of regular increases in tobacco taxation in the tobacco endgame

ObjectiveWe examine the potential role for taxation in the tobacco endgame in New Zealand, where the goal is to become ‘smokefree’ (less than 5% smoking prevalence) by 2025.DesignModelling study using...

The Hazards of Starting and Quitting Smoking: Some Australian Evidence

The empirical analysis employs individual level data from the Australian Health Survey combined with retrospective data on tobacco price matched to the age at which the individual started and quit smoking. Split‐population hazard models are estimated for both starting and quitting smoking. The analysis suggests price plays a significant role in the decision to start smoking but not in the decision to quit. Further sensitivity analysis of different age groups and an alternative data source, questions the robustness of the significant role of price in the smoking initiation decision. From a policy perspective, the results indicate that increases in tobacco taxation can be an important instrument in reducing the incidence of smoking, but should be combined with other mechanisms such as mandating smoke‐free environments and antismoking education. Our results strongly support the targeting of antismoking campaigns towards teenagers.

Government action to reduce smoking.

The major health impacts of smoking were established more than 40 years ago but Governments were slow to respond to the growing health epidemic. Despite laudable tobacco control strategies in many countries, globally deaths from smoking continue to rise and are forecast to reach 10 million a year by the 2030's. There is now general agreement that in order to substantially reduce smoking rates, governments need to adopt a comprehensive approach to tobacco control. This should include a range of measures, notably: a total ban on tobacco advertising and promotion; restrictions on smoking in public places and in the workplace; sustained increases in tobacco taxation combined with measures to curb smuggling; large, bold health warnings on tobacco products; smoking cessation and health education campaigns; and the regulation of tobacco to standards agreed by the health community rather than those set by the tobacco industry. While legislation is to be favoured over voluntary controls, the key to the successful implementation of these measures is winning public support and ensuring proper enforcement. Given the enormous burden that smoking places on health services, governments in developed nations have generally responded by introducing a range of tobacco control measures. However, the picture is far from uniform and some of the best examples of strong, government-led action have occurred in less developed nations. Governments can learn much from these countries and, by supporting the impending global treaty on tobacco control, can help to reduce the smoking-related diseases and deaths of the future.

The Role of Tobacco Taxes in Starting and Quitting Smoking: Duration Analysis of British Data

Summary The annual 5% increase in tobacco taxes in real terms proposed in the recent White Paper on smoking has reaffirmed the commitment of successive UK Governments to above-inflation increases in tobacco taxation to encourage people to stop smoking. This paper presents evidence on the determinants of starting and quitting smoking by using data from the British Health and Lifestyle Survey and is the first to identify tax elasticities for starting and quitting smoking using British data. Self-reported individual smoking histories are coupled with a long time series for the tax rate on cigarettes to construct a longitudinal data set. Estimates are obtained for the effect of above-inflation tax rises on the age of starting smoking and the number of years of smoking. The estimates of the tax elasticity of the age of starting smoking are 0.16 for men and 0.08 for women. The estimates of the tax elasticity of quitting are −0.60 for men and −0.46 for women. These are robust to different specifications.

Economic aspects of tobacco use and taxation policy.

Tax levels have important effects on cigarette prices and tax revenues. Over 70p of every pound spent on tobacco goes to the Chancellor of the Exchequer, yielding over 5 billion pounds. But the value of tobacco tax revenues have generally fallen--by 1986 they were 10% lower than at their peak in 1965, and tobacco revenue is becoming a smaller proportion of total tax receipts. The impact of a consistent increase in tobacco taxation is important in terms of reduced consumption (and harm to health) as well as in terms of reduced employment. Revenue may, however, increase in the short term. Finally, if the findings of Townsend and Atkinson et al (see above) still apply then the distributive effects of increased taxation on the poor might be less than is sometimes feared.