The Distributional of Impacts of Cigarette Taxation in Bangladesh

Despite the obvious positive health impacts of tobacco taxation, an argument raised against it is that poor households bear the burden of the increased prices because of their higher share of spending on tobacco. This report includes estimates of t...

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Main Authors:	Del Carmen, Giselle, Fuchs, Alan, Genoni, Maria Eugenia
Format:	Report
Language:	English
Published:	World Bank, Washington, DC 2018
Subjects:	TAXATION TOBACCO TAX CIGARETTE CONSUMPTION HEALTH BURDEN DISTRIBUTIONAL IMPACT POVERTY INEQUALITY
Online Access:	http://documents.worldbank.org/curated/en/956801528732279043/The-distributional-of-impacts-of-cigarette-taxation-in-Bangladesh http://hdl.handle.net/10986/30011

id	okr-10986-30011
recordtype	oai_dc
spelling	okr-10986-300112021-05-25T09:15:19Z The Distributional of Impacts of Cigarette Taxation in Bangladesh Del Carmen, Giselle Fuchs, Alan Genoni, Maria Eugenia TAXATION TOBACCO TAX CIGARETTE CONSUMPTION HEALTH BURDEN DISTRIBUTIONAL IMPACT POVERTY INEQUALITY Despite the obvious positive health impacts of tobacco taxation, an argument raised against it is that poor households bear the burden of the increased prices because of their higher share of spending on tobacco. This report includes estimates of the distributional impacts of price rises on cigarettes under various scenarios using the Household Income and Expenditure Survey (HIES) 2016/17. One contribution of this analysis is to quantify the impacts by allowing price elasticities to vary across consumption deciles. This shows that an increase in the price of cigarettes in Bangladesh has small consumption impacts and does not significantly change the poverty rate or consumption inequality. These findings stem from relatively even cigarette consumption patterns between less and more welloff households. These results hold even if one considers some small substitution through the use of bidis, which are largely consumed by the poor. The short-term consumption impacts are also negligible compared with the estimated gains because of savings in medical costs and the greater number of productive years of life. 2018-07-16T20:44:15Z 2018-07-16T20:44:15Z 2018-06-01 Report http://documents.worldbank.org/curated/en/956801528732279043/The-distributional-of-impacts-of-cigarette-taxation-in-Bangladesh http://hdl.handle.net/10986/30011 English Global Tobacco Control Program; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Economic & Sector Work :: Other Public Sector Study Economic & Sector Work South Asia Bangladesh
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	English
topic	TAXATION TOBACCO TAX CIGARETTE CONSUMPTION HEALTH BURDEN DISTRIBUTIONAL IMPACT POVERTY INEQUALITY
spellingShingle	TAXATION TOBACCO TAX CIGARETTE CONSUMPTION HEALTH BURDEN DISTRIBUTIONAL IMPACT POVERTY INEQUALITY Del Carmen, Giselle Fuchs, Alan Genoni, Maria Eugenia The Distributional of Impacts of Cigarette Taxation in Bangladesh
geographic_facet	South Asia Bangladesh
relation	Global Tobacco Control Program;
description	Despite the obvious positive health impacts of tobacco taxation, an argument raised against it is that poor households bear the burden of the increased prices because of their higher share of spending on tobacco. This report includes estimates of the distributional impacts of price rises on cigarettes under various scenarios using the Household Income and Expenditure Survey (HIES) 2016/17. One contribution of this analysis is to quantify the impacts by allowing price elasticities to vary across consumption deciles. This shows that an increase in the price of cigarettes in Bangladesh has small consumption impacts and does not significantly change the poverty rate or consumption inequality. These findings stem from relatively even cigarette consumption patterns between less and more welloff households. These results hold even if one considers some small substitution through the use of bidis, which are largely consumed by the poor. The short-term consumption impacts are also negligible compared with the estimated gains because of savings in medical costs and the greater number of productive years of life.
format	Report
author	Del Carmen, Giselle Fuchs, Alan Genoni, Maria Eugenia
author_facet	Del Carmen, Giselle Fuchs, Alan Genoni, Maria Eugenia
author_sort	Del Carmen, Giselle
title	The Distributional of Impacts of Cigarette Taxation in Bangladesh
title_short	The Distributional of Impacts of Cigarette Taxation in Bangladesh
title_full	The Distributional of Impacts of Cigarette Taxation in Bangladesh
title_fullStr	The Distributional of Impacts of Cigarette Taxation in Bangladesh
title_full_unstemmed	The Distributional of Impacts of Cigarette Taxation in Bangladesh
title_sort	distributional of impacts of cigarette taxation in bangladesh
publisher	World Bank, Washington, DC
publishDate	2018
url	http://documents.worldbank.org/curated/en/956801528732279043/The-distributional-of-impacts-of-cigarette-taxation-in-Bangladesh http://hdl.handle.net/10986/30011
_version_	1764470747898576896

The Distributional of Impacts of Cigarette Taxation in Bangladesh

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