The Distributional of Impacts of Cigarette Taxation in Bangladesh

Del Carmen, Giselle ; Fuchs, Alan ; Genoni, Maria Eugenia

World Bank, Washington, DC

关键词: TAXATION;    TOBACCO TAX;    CIGARETTE CONSUMPTION;    HEALTH BURDEN;    DISTRIBUTIONAL IMPACT;   

RP-ID  :  127048

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Despite the obvious positive healthimpacts of tobacco taxation, an argument raised against itis that poor households bear the burden of the increasedprices because of their higher share of spending on tobacco.This report includes estimates of the distributional impactsof price rises on cigarettes under various scenarios usingthe Household Income and Expenditure Survey (HIES) 2016/17.One contribution of this analysis is to quantify the impactsby allowing price elasticities to vary across consumptiondeciles. This shows that an increase in the price ofcigarettes in Bangladesh has small consumption impacts anddoes not significantly change the poverty rate orconsumption inequality. These findings stem from relativelyeven cigarette consumption patterns between less and morewelloff households. These results hold even if one considerssome small substitution through the use of bidis, which arelargely consumed by the poor. The short-term consumptionimpacts are also negligible compared with the estimatedgains because of savings in medical costs and the greaternumber of productive years of life.