Increasing Taxes on Tobacco in Low and Middle-Income Countries : Hurting or Saving the Poor?

Increasing Taxes on Tobacco in Low and Middle-Income Countries : Hurting or Saving the Poor?

Policy makers hesitate to increase tobacco taxes over concerns about taxes being regressive and potentially increasing poverty and inequality. This note summarizes a set of studies of the effects of raising tobacco taxes in 11 low and middle-income...

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Main Authors: Fuchs Tarlovsky, Alan, Gonzalez Icaza, María Fernanda
Format: Brief
Language:English
Published: World Bank, Washington, DC 2020
Subjects:
TAXATION
TOBACCO TAX
WELFARE IMPACT
DISTRIBUTIONAL IMPACT
TOBACCO PRICE
Online Access:http://documents.worldbank.org/curated/en/840531596003778706/Increasing-Taxes-on-Tobacco-in-Low-and-Middle-Income-Countries-Hurting-or-Saving-the-Poor
http://hdl.handle.net/10986/34309
id okr-10986-34309
recordtype oai_dc
spelling okr-10986-343092021-05-25T10:54:39Z Increasing Taxes on Tobacco in Low and Middle-Income Countries : Hurting or Saving the Poor? Fuchs Tarlovsky, Alan Gonzalez Icaza, María Fernanda TAXATION TOBACCO TAX WELFARE IMPACT DISTRIBUTIONAL IMPACT TOBACCO PRICE Policy makers hesitate to increase tobacco taxes over concerns about taxes being regressive and potentially increasing poverty and inequality. This note summarizes a set of studies of the effects of raising tobacco taxes in 11 low and middle-income countries using an extended cost-benefit analysis (ECBA) and harmonized national household budget survey data and introduces the TOBACTAX Tool. The studies find that demand price elasticities for tobacco products are larger among lower-income households and that the poor receive the largest long-term gains from tobacco taxation. Tobacco taxes have progressive long-term effects due to lower medical expenses and added years of productive life, which contribute to poverty reduction in most countries studied. TOBACTAX Tool can help replicate such analyses elsewhere. 2020-08-10T18:09:56Z 2020-08-10T18:09:56Z 2020-07 Brief http://documents.worldbank.org/curated/en/840531596003778706/Increasing-Taxes-on-Tobacco-in-Low-and-Middle-Income-Countries-Hurting-or-Saving-the-Poor http://hdl.handle.net/10986/34309 English Poverty and Equity Notes;No. 25 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Brief
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
WELFARE IMPACT
DISTRIBUTIONAL IMPACT
TOBACCO PRICE
spellingShingle TAXATION
TOBACCO TAX
WELFARE IMPACT
DISTRIBUTIONAL IMPACT
TOBACCO PRICE
Fuchs Tarlovsky, Alan
Gonzalez Icaza, María Fernanda
Increasing Taxes on Tobacco in Low and Middle-Income Countries : Hurting or Saving the Poor?
relation Poverty and Equity Notes;No. 25
description Policy makers hesitate to increase tobacco taxes over concerns about taxes being regressive and potentially increasing poverty and inequality. This note summarizes a set of studies of the effects of raising tobacco taxes in 11 low and middle-income countries using an extended cost-benefit analysis (ECBA) and harmonized national household budget survey data and introduces the TOBACTAX Tool. The studies find that demand price elasticities for tobacco products are larger among lower-income households and that the poor receive the largest long-term gains from tobacco taxation. Tobacco taxes have progressive long-term effects due to lower medical expenses and added years of productive life, which contribute to poverty reduction in most countries studied. TOBACTAX Tool can help replicate such analyses elsewhere.
format Brief
author Fuchs Tarlovsky, Alan
Gonzalez Icaza, María Fernanda
author_facet Fuchs Tarlovsky, Alan
Gonzalez Icaza, María Fernanda
author_sort Fuchs Tarlovsky, Alan
title Increasing Taxes on Tobacco in Low and Middle-Income Countries : Hurting or Saving the Poor?
title_short Increasing Taxes on Tobacco in Low and Middle-Income Countries : Hurting or Saving the Poor?
title_full Increasing Taxes on Tobacco in Low and Middle-Income Countries : Hurting or Saving the Poor?
title_fullStr Increasing Taxes on Tobacco in Low and Middle-Income Countries : Hurting or Saving the Poor?
title_full_unstemmed Increasing Taxes on Tobacco in Low and Middle-Income Countries : Hurting or Saving the Poor?
title_sort increasing taxes on tobacco in low and middle-income countries : hurting or saving the poor?
publisher World Bank, Washington, DC
publishDate 2020
url http://documents.worldbank.org/curated/en/840531596003778706/Increasing-Taxes-on-Tobacco-in-Low-and-Middle-Income-Countries-Hurting-or-Saving-the-Poor
http://hdl.handle.net/10986/34309
_version_ 1764480627244007424

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