The role of taxation in tobacco control and its potential economic impact in China.

ABSTRACT:

Objectives

To identify key economic issues involved in raising the tobacco tax and to recommend possible options for tobacco tax reform in China.

Methods

Estimated price elasticities of the demand for cigarettes, prevalence data and epidemiology are used to estimate the impact of a tobacco tax increase on cigarette consumption, government tax revenue, lives saved, employment and revenue loss in the cigarette industry and tobacco farming.

Results

The recent Chinese tax adjustment, if passed along to the retail price, would reduce the number of smokers by 630,000 saving 210,000 lives, at a price elasticity of -0.15. A tax increase of 1 RMB (or US$0.13) per pack of cigarettes would increase the Chinese government's tax revenue by 129 billion RMB (US 17.2 billion), decrea

SUBMITTER: Hu TW 

PROVIDER: S-EPMC2921252 | biostudies-literature | 2010 Feb

REPOSITORIES: biostudies-literature