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Tobacco tax yardstick : does it work?

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dc.contributor.author Krasovsky, Konstantin
dc.date.accessioned 2014-12-22T20:02:57Z
dc.date.available 2014-12-22T20:02:57Z
dc.date.issued 2013-03
dc.identifier.citation Krasovsky, K. (2013). Tobacco tax yardstick: does it work?. Tobacco Control en
dc.identifier.uri http://hdl.handle.net/10625/53486
dc.description.abstract Tobacco tax yardstick is the recommendation to have tax component between two-thirds and four-fifths of the total retail cost. Since 1990s, Denmark, Finland, France, Ireland, Portugal and the UK had levied cigarette taxes higher than 75% of retail price. The paper explores effectiveness of tobacco taxation policy in terms of tobacco consumption reduction in these countries in 1990-2010. Design Data on tobacco sales, tax rates and prices were taken from the EU and national databases. Trends of total tobacco consumption were estimated including both legal and illegal (smuggling into and out of the country) cigarette and other tobacco products sales. Results In the considered countries, four kinds of tobacco taxation policy were practiced: 1) Tax decrease followed by tobacco consumption increase while tax proportion in retail price was about 75%; 2) No decline in tobacco consumption when taxes were stable, while the tax proportion exceeded 75%; 3) After steep tax increase tobacco consumption was sharply reduced, while there were almost no changes in the tax proportion; 4) Moderate tax increases reduced tobacco consumption only if they increased real prices, adjusted for inflation, income and illicit tobacco share, while tax proportion in the increased real price could even decline. Conclusion Keeping tobacco tax component high (even above 75% of retail price) did not contribute to the health objectives aimed at reducing tobacco consumption if real prices were not increased. To reduce tobacco consumption, even very high tobacco tax should be on the rise to ensure tobacco affordability decrease. en
dc.format Text en
dc.format.extent 1 digital file (21 p.) en
dc.format.mimetype application/pdf
dc.language.iso en
dc.publisher BMJ en
dc.subject TAXATION en
dc.subject ECONOMICS en
dc.subject PRICE en
dc.subject SURVEILLANCE AND MONITORING en
dc.subject ILLEGAL TOBACCO PRODUCTS en
dc.subject TOBACCO CONTROL en
dc.subject PUBLIC HEALTH en
dc.subject HEALTH POLICY en
dc.title Tobacco tax yardstick : does it work? en
dc.type Journal Article (peer-reviewed) en
idrc.project.number 106837
idrc.project.componentnumber 106837001
idrc.project.title Impact of Tobacco Taxes and Price Increases in Ukraine, Russia, and Belarus en
idrc.dspace.access IDRC Only en
idrc.rims.adhocgroup IDRC SUPPORTED en
idrc.recordsserver.bcsnumber IC01-6734-4
idrc.noaccess Due to copyright restrictions the full text of this research output is not available in the IDRC Digital Library or by request from the IDRC Library. / Compte tenu des restrictions relatives au droit d'auteur, le texte intégral de cet extrant de recherche n'est pas accessible dans la Bibliothèque numérique du CRDI, et il n'est pas possible d'en faire la demande à la Bibliothéque du CRDI. en


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