Tobacco Excise Research Articles

Maximizing Revenue : an in-depth Analysis of Tobacco Excise, Ethyl Alcohol Excise, and Excise Revenue

Maximizing Revenue : an in-depth Analysis of Tobacco Excise, Ethyl Alcohol Excise, and Excise Revenue

Distributional Impacts of Tobacco Excise Taxes in Serbia.

Numerous studies worldwide have investigated the impact of tobacco tax increase on household welfare, focusing on concerns regarding potential tobacco taxation regressivity and its effects on the poorest, whereas their scope was limited to the working population. To explore the effects of tax changes on household budgets, accounting for the retired population as well, we employed the modified Extended Cost-Benefit Analysis (ECBA) framework, assuming a 43.6% specific tax increase that fits the EU Tobacco Tax Directive recommendation of minimum EUR 90 excise taxes per 1,000 cigarettes. Our analysis encompassed changes in: 1) tobacco expenditure (accounting for price elasticities by income groups: low-, middle-, and high-income), 2) medical costs linked to smoking-related diseases (utilizing relative risk of morbidity/mortality and smoking-attributable fractions), 3) years of working life (considering the years of working life lost among the working population), and 4) years of pension receipt (accounting for the years of retirement life lost due the premature death). Under an assumed specific excise increase leading to a 22.4% retail tobacco price rise, the net gains in disposable household budgets would be 0.01% for high-income, 1.3% for middle-income, and 2.9% for low-income households. A tax increase would yield a progressive effect on income distribution, benefiting the most economically disadvantaged population thereby contributing to a more equitable income distribution. To effectively reduce tobacco consumption, subsequent smoking-related medical costs, and associated productivity and pension losses, it is recommended that Serbia implement a minimum 43.6% increase in the specific tobacco excise tax.

Early assessment of tobacco excise sharing fund as policy for farmers’ viable alternatives in Indonesia: case study of four municipalities in Indonesia

Indonesia’s Tobacco Excise Sharing Fund (DBHCHT) policy mandates that part of the fund be allocated for tobacco crop diversification – reducing the farmers’ reliance on the tobacco industry as well as implementing Article 17 of the Framework Convention on Tobacco Control (FCTC). We collected primary data from key stakeholders in four main tobacco-producing municipalities. A number of challenges related to DBHCHT utilization remained at subnational levels. The suboptimal use of DBHCHT could be explained in part by (i) constantly changing central government regulations, (ii) farmers’ unawareness of DBHCHT regulations, (iii) delays in DBHCHT allocation, and (iv) supply and demand mismatches. Although Indonesia has not been a part of the FCTC ratification, the DBHCHT mandate is in line with the FCTC article 17, i.e., promoting economically viable alternatives for tobacco farmers. This study concluded that DBHCHT utilization needs to go further to void this mandate given the challenges at the subnational level. Therefore, this study recommends additional technical and practical regulations involving multisectoral stakeholders and the use of DBHCHT to meet the financial needs of crop diversification.

Management of Fund Allocation for Tobacco Excise Products on the Welfare of Tobacco Farmers in Pamekasan District

Management of Fund Allocation for Tobacco Excise Products on the Welfare of Tobacco Farmers in Pamekasan District

CAPABILITY DEPRIVATION MEETS THE DIGITAL DIVIDE: THE URGENCY OF ACCESSIBILITY AND CONNECTIVITY IN ALLEVIATING THE POVERTY OF TOBACCO FARMERS IN INDONESIA

Although the area and production of smallholder plantation tobacco plants cover more than 99% of the total plantation area and tobacco production in Indonesia, the allocation of Tobacco Excise Production Sharing Funds (Dana Bagi Hasil Cukai Hasil Tembakau/DBHCHT) in 2017-2021 has been approximately Rp. 2.9 trillion per year, and several DBHCHT laws and regulations are adequate, but many tobacco farmers are still in poverty. Based on the statute’s normative method, conceptual, analytical, and case techniques. As the synthesis of several poverty theories affirms that poverty is the scarcity of means of livelihood or the limited level of welfare of a person or a community due to the instability of existing resources and the deprivation of basic capabilities, which results in the inability to achieve their certain functions and goals, it is essential to solving the capability deprivation and digital divide of tobacco farmers by improving the accessibility and connectivity. The Directorate General of Fiscal Balance is necessary to build a website and monitor and evaluate transparently against any obstacles to accessibility and connectivity. Two conclusions were generated. First, the deprivation of capabilities and the digital divide are causes of poverty, so it is necessary to assess alternative policies through access and connection of adequate and sustainable information and communication technologies for tobacco farmers and communities or farmer groups. Second, the government should provide the accessibility and connectivity of tobacco farmers in Indonesia by strengthening tobacco farmer groups (such as cooperatives) and strengthening the cost-effectiveness of technology and value-added service provision.

E-PARTICIPATION IN THE MANAGEMENT OF TOBACCO EXCISE PRODUCTION SHARING FUNDS: AN INITIATION TO STRENGTHEN THE PRINCIPLES OF DECENTRALIZATION IN INDONESIA

The implementation of the Tobacco Excise Production Sharing Fund (Dana Bagi Hasil Cukai Hasil Tembakau/DBHCHT) still leaves a disharmony between justice and public benefit, considering that even though the revenue from tobacco excise revenue has increased, the allocation has not been able to cover losses in several impovitalas of the state, such as the field of community welfare, law enforcement, and health on the justification for the less control of cigarettes in society on behalf of excise levies on tobacco products. Two main conclusions were drawn based on a normative juridical study with a focusing principle of decentralization. First, there are still several obstacles and challenges in the management of DBHCHT in Indonesia due to the inadequate participation of the stakeholders involved in the implementation of DBHCHT. Second, e-participation, which includes e-information, e-consultation, and e-cooperation, is needed so that the performance of DBHCHT management in Indonesia can run ideally based on the principle of decentralization. Even though the private industry holds the cigarette trade, it is compulsory to transfer the actual CHT as the mandate of decentralization principle in the 1945 Constitution due to the DBHCHT that local governments must accept in carrying out their functions and duties to develop their regions. It is recommended that the central government build an online DBHCHT system, including a website, to accommodate the running of e-participation so that decentralization in the implementation of DBHCHT produces the expected outputs and outcomes.

PENGENALAN KEGIATAN TAMBAHAN MATA PENCAHARIAN MASYARAKAT MELALUI PEMBINAAN PENGEMBANGAN PARIWISATA BERBASIS MASYARAKAT DI DESA PURBOSARI

This activity is a community service activity for the people of Purbosari village, Ngadirejo sub-district, Temanggung Regency. as part of the activities of the Central Java Province Bappeda for the 2017 fiscal year. The problem that is being handled is the problem of the loss of livelihoods of the tobacco farming community due to restrictions on tobacco farming and tobacco products. This activity is also an implementation of the Regulation of the Minister of Finance of the Republic of Indonesia Number: 28 / PMK.07 / 2016 concerning the Use, Monitoring and Evaluation of Tobacco Excise Production Sharing Funds. The model used is a community-based tourism development model as a form of the tourism sector's creative economy that provides optimal benefits to the community. The service process is carried out by means of efforts to empower the people's economy in the tourism sector with a community-based tourism (CBT) approach or community-based tourism by involving local communities in activities, which include the introduction of tourism potential and training on the utilization of local non-tobacco agricultural potentials to be processed into culinary products and by by tours. The local community is motivated to become the main actor in the management of tourism activities that arise from the utilization of the local potential that exists in the service location. The result of this activity is the achievement of community understanding of tourism as an alternative to activities other than tobacco farming, understanding of local tourism potential, development of tourism activities and tourism support activities in the location.

Efektivitas Pemanfaatan Dana bagi Hasil Cukai Hasil Tembakau dalam Bidang Kesehatan di Kota Surakarta Tahun 2018

<p><em>This study describes the application of Tobacco Excise Revenue Funds in Surakarta City and reviews the Efficiency of Use of Tobacco Excise Revenue Sharing Funds specifically in the Health sector in Surakarta City on 2018. This study is normative legal research, applies to provide an assessment that allows to be applied to conclusions that have been taken. This study uses a syllogism method with a deductive mindset. Primary legal material is a regulation that applies authoritatively, secondary legal material consists of books, legal journals, scientific articles and relevant research results and non-legal material consisting of interviews. The technique of receiving legal material in this legal discussion uses document studies and interviews. This study shows that issuing Profit Sharing Funds for Tobacco Excise in Surakarta City in the Health Sector on 2018 is in accordance with Law Number 39 of 2007 and PMK 222/PMK.07/2017 and has run quite effectively starting from financial performance and realization of program activities even though technical and juridical constraints. </em><em></em></p><p><em> </em></p><p><strong>Keywords</strong>: <em>Excise Revenue Funds</em><em>, </em><em>Tobacco, Health, Surakarta City.</em><em></em></p>

Government Challenges in Simplifying Tobacco Excise Rate Structure to Minimize Excise Avoidance of Cigarette Manufacturer in Indonesia

The aim of this research is to analyses the government challenge to simplify tobacco excise rate structure to minimize excise avoidance potentially performed by Cigarette Manufacture in Indonesia. Indonesia government manages to simplify the structure of tobacco excise rate from previously 12 layers into 5 layers as planned in 4 years roadmap (2018 - 2021). The aim of this initiative is to minimize excise avoidance practices, that is expected to optimize tobacco excise revenues. This policy involves various actors and gets the pros and cons of stakeholders. Basically, simplifying tobacco rate structure objective should be to discourage cigarettes consumption. This research is descriptive qualitative research, data was collected through desk study and field study through in-depth interview with key informants. The results showed that consumption control before and after the initiatives (regulated by 146 /PMK.10 /2017) did not show a positive trend. Meanwhile, there was an intervention from the tobacco industry on the process of policy formulation and the difficulty of getting agreement in the policy formulation process from related stakeholders. Finally, the initiative to further simplifying the layers has been decided to postpone in 2019.This research clearly shows that competition among stakeholders exists. The government even on the difficulty and dilemma situation to make policy decision on what priority it should undertake firstly.

Impacts of Tobacco Excise Duty on Consumers and Producers in the Czech Republic

Impacts of Tobacco Excise Duty on Consumers and Producers in the Czech Republic

State Tobacco Excise Taxation, Comprehensive Smoke-free Air Laws, and Tobacco Control Appropriations as Predictors of Smoking Cessation Success in the United States.

The purpose of the present study was (1) to examine demographic differences between smokers who successfully quit (n = 1809), who relapsed (n = 6548), and who did not attempt to quit (n = 11 102) within the last year, and (2) to examine state-level tobacco policies/programs as predictors of quit success. Data were utilized from the 2014-2015 Tobacco Use Supplement to the Current Population Survey, which were paired with 2014 data on taxation, appropriations, and smoke-free air laws. As compared with smokers who relapsed, those who successfully quit were more likely to be white, married, more highly educated, of higher income, and heavier smokers. Compared with those who did not attempt to quit, those who attempted to quit, regardless of success, were younger and more likely to be Hispanic. State comprehensive smoke-free air laws and tobacco excise taxation significantly predicted quit success. Thus, expansions of these policies should be considered to promote successful quitting.

Indexation of Tobacco Excise and Customs Duty and Smoking Prevalence Among Australian Adults, 2001-2010: A Serial Cross-sectional Study.

Australia's excise and customs duty on tobacco has been automatically increased biannually since 1984. Increases in duty on par with inflation ensured that tobacco stayed at least as costly as other goods. This would be expected to maintain, rather than drive down, smoking prevalence. We examined the association between smoking prevalence and duty over a 10-year period. Using monthly data from five Australian capital cities, collected from March 2001 to March 2010 among Australians aged at least 18 years, multiple linear regression modeled associations between smoking prevalence and the two components (duty and non-duty) of the recommended retail price of an average packet of cigarettes, adjusting for policy covariates. Prevalence declined from 23.6% in March 2001 to 17.0% in March 2010 [absolute difference 6.6%; 95% confidence interval (CI) = 6.5 to 6.8]. Duty increased from $0.2026 to $0.2622 per cigarette over the same period. In the adjusted model, a 1-cent increase in the duty component of price was not associated with changes in prevalence (0.019; 95% CI = -0.035 to 0.028). Increased non-duty component of price was associated with a decline in prevalence (-0.027; 95% CI = -0.052 to -0.002). This effect was stronger when changes in income were controlled for. In line with expectations, inflation-adjusted duty was not associated with changes in smoking prevalence, but it may have prevented upward pressure on prevalence that increasing affordability could have exerted. Frequent increases in duty greater than the growth in both wages and goods would more effectively reduce smoking than regular indexation. Few countries inflation-adjusted excise duty to ensure that tobacco products do not become more affordable; however, Australia experienced a decade of inflation adjustment alone, enabling the impact of this policy to be studied. This study shows that inflation-adjusted duty likely did prevent tobacco becoming more affordable and that indexation was associated with declines in smoking when tobacco companies over-shifted the duty rises (ie, increased price over and above duty rises).The study also suggests that frequent increases in taxation that exceed both wage growth and increases in costliness of other goods are needed to prompt increased rates of quitting.

Revenue-Raising Potential of Alcohol and Tobacco Excise Duties in Germany and Poland

<p><em>Accumulation of funds to cover government spending is the </em><em>primary purpose</em><em> of </em><em>taxation. According to multiple authors, excise duties are classified as taxes with the highest revenue-raising potential. In the OECD member states, e</em><em>xcise duties constitute a considerable source of state revenue. They account on average for 7.6% of total taxation. The European Union member states apply a harmonized structure for excise duties on selected products. They include, above all, alcoholic beverages and tobacco products. The average share of alcohol and tobacco taxation in GDP and total taxation for EU-28 in 2014 equaled, respectively, 0.8% and 2.2%. Although taxes on alcohol and tobacco are in no small extent harmonized,<strong> </strong>their design may sill vary between member states and strongly affect their collection efficiency. The primary purpose of this article is to</em> <em>compare excise duties imposed on alcohol and tobacco in Germany and Poland. The article is divided into three parts. The first addresses theoretical aspects concerning excise taxation. The second reviews the design of alcohol and tobacco excise duties in Germany and Poland. The third evaluates the revenue-raising potential of these duties in both countries.</em></p>

Roadmap to a tobacco epidemic: transnational tobacco companies invade Indonesia

BackgroundIndonesia is the world's fifth largest cigarette market in the world but for decades, transnational tobacco companies (TTCs) have had limited success infiltrating this market, due to their inability to...

Who Supports Tobacco Excise Taxes? Factors Associated With Townsʼ and Individualsʼ Support in Massachusetts

The authors examined factors related to public support for cigarette taxes: smoking behavior, attitudes about other tobacco control policies, and sociodemographic factors. The authors regressed referendum voting outcomes on sociodemographic characteristics of Massachusetts' 351 towns. Logistic regressions on the surveys of Massachusetts adults (N = 14,000+) showed support for hypothetical tax increases to be related to respondents' smoking status, support for other tobacco control policies, and sociodemographic characteristics. Average educational attainment, probably acting as a proxy for nonsmoking prevalence, strongly predicted town-level support for Massachusetts' 1992 cigarette tax referendum. Survey respondents' support for hypothetical further increases was strongest if tax proceeds were earmarked for tobacco control or health purposes and if the individual was a nonsmoker and favored other tobacco control policies. For an earmarked tax, support was stronger among younger persons, females, persons with higher education, racial/ethnic minorities, and smokers with children. The high nationwide proportion of nonsmokers means that tobacco tax proposals can obtain strong voter support, but only if tax revenues are clearly earmarked for tobacco control and similar uses. Individual- and town-level characteristics can identify likely concentrations of support. Because attitudes toward tobacco control are only partly linked to smoking status, education campaigns may make a difference.

State Tobacco Excise Taxes and Adolescent Smoking Behaviors in the United States

The objective of the study described in this article was to examine the association between state cigarette excise taxes and smoking behaviors among youth in the United States. A survey was nationally mailed to adolescents in the Growing Up Today Study, an ongoing cohort of offspring of participants in the Nurses' Health Study II. A volunteer sample of 10,981 adolescent boy and girl participated in the Growing Up Today Study, who were 12 to 18 years old in 1999. Logistic regression was used to examine the relationship between state cigarette excise taxes (in quartiles) and experimentation (ever smoked) and established smoking (smoked at least 100 cigarettes in a lifetime). State tax levels in 1999 ranged from 2.5 to 100 cents. In a model that adjusted for age, gender, peer smoking, parental smoking, state clustering, state poverty level, and possession of tobacco promotional items, higher tax rates were associated with decreased odds of experimentation (test for trend p < 0.01). The highest quartile of tax (60-100 cents) was significantly associated with lower odds of experimentation (OR = 0.79; 95% CI, 0.64-0.98) and appeared protective against established smoking (OR = 0.80; 95% CI, 0.49-1.29). This study provides recent evidence that higher state cigarette excise taxes are associated with decreased experimental smoking among adolescent boys and girls. Higher state cigarette taxes may also be associated with lower odds of established smoking in this age group, although the association appears to be attenuated by peer and parental smoking. These results support the inclusion of tobacco taxes in state tobacco control programs.

The Distributional Impact of Tobacco Excise Increases*(1)

The Distributional Impact of Tobacco Excise Increases*⁽¹⁾

The Effects of Increasing the Tobacco Excise Tax on the U.S. Economy:

The analysis in this study examines the effects on the U.S. economy of a $1.00 per pack equivalent increase in the tobacco products excise tax which has been proposed as a means to partially finance the Clinton Administration's program of health care reform. The analytical approach used in the study consisted of a computable general equilibrium model composed of 14 producing sectors, 14 consuming sectors, six household categories classified by income and a government. The results suggest that as a result of an increase in the excise tax, there will be a decrease in output by all producing sectors of 0.21 percent, a fall in the consumption of goods and services by about 0.49 percent, a decline in total utility by 0.47 percent, and a net increase in government revenue of 1.74 percent. Moreover, as a consequence of this tax increase, tobacco consumption will decline by 12.15 percent. Clearly, an increase in the federal excise tax on tobacco products is a potent policy to curtailing smoking.

Tobacco control: reducing cancer incidence and saving lives. American Society of Clinical Oncology.

The American Society of Clinical Oncology (ASCO) supports the elimination of tobacco products. Toward that goal, ASCO urges the adoption of national policy that strengthens regulation of the sale, promotion, and distribution of such products. To reduce cancer mortality, our regulatory policies must recognize that the nicotine within tobacco is an addictive substance, the use of which leads to 30% of all cancer deaths and a total of 419,000 deaths each year. Tobacco-related advertising and promotion should be banned. At a minimum, national policies should: ban billboards; limit advertising to black and white text only; prohibit the sale or giveaway of products that contain tobacco brand names or logos; prohibit brand name sponsorship of sporting or entertainment events; and require stronger and more prominent warning labels on all tobacco products. Despite existing state laws prohibiting sale of tobacco products to minors, children are able to buy such products easily. National regulation of the sale and distribution of tobacco products is necessary to eliminate children's access to tobacco. Where sales are permitted, they should be limited to face-to-face purchases by individuals 18 and older. Vending machines and other means of distributing tobacco without a face-to-face purchase should be outlawed. To the extent tobacco sales are allowed to continue, the federal government should mandate that the tobacco industry contribute substantial funds for a national public education campaign to prevent young people from smoking and other tobacco use. ASCO has long advocated a substantial increase (in the range of $2) in the federal excise tax on cigarettes and other tobacco products- a measure known to decrease consumption, particularly among children. Revenue from a tax on tobacco products should be used to support retraining for tobacco farmers, biomedical research, health care delivery, and antitobacco education. United State trade policies should discourage the export of tobacco products and manufacturing to foreign markets. At a minimum, United States tobacco companies selling or manufacturing tobacco products in foreign markets that have not developed comparable health warning labels should be required to retain United States warning labels. Physicians, nurses, and other health care professionals-especially those in primary care disciplines-have the opportunity and responsibility to assist patients' efforts to quit tobacco use and to ensure that nonsmokers continue to avoid the addiction. Oncology specialists should discuss the causal relationship between tobacco use and cancer as well as a variety of other chronic diseases and assist, as required, the patient and family members to end tobacco dependency. In addition, health care professionals must advocate that public and private insurers be required to provide health care coverage for medically necessary interventions, such as counseling and nicotine transdermal systems.

An Assessment of the Impact of an Increase in the Tobacco Excise Tax on the U.S. Economy

The analysis in this study examines the effects on the U.S. economy of a proposed $1 per pack equivalent increase in the tobacco products excise tax as a means to partially finance a program of health care reform. The analytical approach used in this study consisted of a general equilibrium model composed of 14 producing sectors, 14 consuming sectors, and six household categories classified by income and a government. Data suggest that as a result of an increase in the excise fax, there will be a decrease in output by all producing sectors of 0.21 percent, a fall in the consumption of goods and services by about 0.49 percent, a decline in total utility by 0.47 percent, and a net increase in government revenue of 1.74 percent. Moreover, as a consequence of this fax increase, tobacco consumption will decline by 12.15 percent. Clearly, an increase in the federal excise tax on tobacco products is a potent policy for curtailing smoking.