Excise tax increases and cigarette sales.

The effect of excise tax increases on cigarette prices in South Africa

INTRODUCTION The effectiveness of excise tax increases as a tool for reducing tobacco consumption depends largely on how the tax increases impact the retail price. We estimate this relationship in South Africa for 2001-2015. DATA Statistics South Africa provided disaggregated cigarette price data, used in the calculation of the Consumers' Price Index. Data on the excise tax per cigarette were...

The case for increasing North Carolina's cigarette excise tax.

Excise tax avoidance: the case of state cigarette taxes.

We conduct an applied welfare economics analysis of cigarette tax avoidance. We develop an extension of the standard formula for the optimal Pigouvian corrective tax to incorporate the possibility that consumers avoid the tax by making purchases in nearby lower tax jurisdictions. To provide a key parameter for our formula, we estimate a structural endogenous switching regression model of border...

Korea's 2015 cigarette tax increases.

South Korea increased tobacco taxes in 2015 after a 10-year gap. This commentary suggests two lessons for public finance practitioners. Substantive tax increases are crucial to reducing tobacco use; particularly where prices are demonstrably lower and prevalence higher in comparison to other countries ranked similarly on economic development indicators. Second, as a rule of thumb, governments c...

Cigarette Tax Increases: Cautions and Considerations

As states deal with their fiscal crises and search for ways to close large gaps between revenues and expenditures, few states have yet enacted significant tax increases — with the exception of cigarette tax increases. So far this year, 14 states have increased their excise taxes on cigarettes, and cigarette tax increases are under active consideration in several other states. Before the year is...