Economics of Tobacco Toolkit, Tool 6 : Equity Issues, Tobacco, and the Poor

Currently there are approximately 4 million tobacco related deaths annually. If present trends continue, by the year 2030 the number of deaths will soar to about 10 million annual deaths, with 7 million in low-income countries. However, government action to establish various tobacco control initiatives can prevent this from happening and save a significant number of lives. Tobacco control measures include: i) raising tobacco prices by imposing higher excise taxes; ii) advertising and marketing bans and restrictions; and iii) clean indoor air provisions. A popular and valid concern holds that raising tobacco excise taxes for the purposes of tobacco control imposes an untenable and unfair burden on the poor. In short, it is argued that higher tobacco excise taxes increase inequality in the post-tax distribution of income and reduces the real incomes of a particularly vulnerable group, the poor. This tool discusses a number of approaches in which to examine the validity of this argument. Techniques to analyze the impact of tobacco consumption and tobacco taxes on the poor are explained. And analytical methods using country-specific data are examined so that policy analysts can effectively address concerns about the poor, tobacco consumption, and tobacco control policies.

Bibliographic Details

Main Author:	Peck, Richard M.
Other Authors:	Yurekli, Ayda
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	AD VALOREM, AD VALOREM TAXES, ADDICTION, AMOUNT OF TOBACCO, ANALYTICAL METHODS, BIDIS, BIRTH WEIGHTS, BRAND NAMES, BUSINESS TAXES, CAPITAL GAINS, CARDIOVASCULAR DISEASES, CASH FLOW, CIGARETTE, CIGARETTE BRANDS, CIGARETTE CONSUMPTION, CIGARETTE TAXES, CIGARETTES, COMMODITIES, CONSUMER DEMAND, CONSUMERS, CONSUMPTION INCREASES, CONSUMPTION LEVELS, CONSUMPTION OF TOBACCO, CORPORATE INCOME TAX, CORPORATE INCOME TAXES, COUNTRY TO COUNTRY, CURRENT SMOKERS, DEMAND ANALYSIS, DEVELOPING COUNTRIES, DIMINISHING MARGINAL UTILITY, DISTRIBUTION OF INCOME, DOMESTIC TOBACCO, ECONOMIC THEORY, ECONOMICS OF TOBACCO CONTROL, EFFECTIVE TOBACCO CONTROL, EFFECTS OF TOBACCO, EQUAL SHARE, EXCISE TAX, EXCISE TAXES, FACTORS OF PRODUCTION, GINI COEFFICIENT, GOVERNMENT ACTION, HAND-ROLLED CIGARETTES, HEART ATTACKS, INCOME, INCOME EFFECT, INCOME ELASTICITY OF DEMAND, INCOME GROUP, INCOME GROUPS, INCOME LEVELS, INCOME TAX, INCOME TAXES, INCOMES, INDOOR AIR, INELASTIC DEMAND, INEQUALITY MEASURES, INTEREST INCOME, LIFE EXPECTANCY, LIVING STANDARDS, LOW-INCOME COUNTRIES, LUNG CANCER, LUNG CANCER MORTALITY, MANUFACTURED CIGARETTES, MARGINAL UTILITY, MARGINAL VALUE, MARKET PRICES, MIDDLE-INCOME COUNTRIES, MIDDLE-INCOME COUNTRY, NICOTINE, NORMAL GOOD, OUTPUT, PARTICULAR COUNTRY, PER CAPITA CONSUMPTION, PER CAPITA INCOME, PERMANENT INCOME, PERSONAL INCOME TAX, PREMATURE DEATHS, PREMATURE MORTALITY, PRICE DECLINES, PRICE ELASTICITY, PRICE ELASTICITY OF DEMAND, PRICE INCREASES, PRICE OF CIGARETTES, PRICE OF TOBACCO, PROGRESSIVE TAXES, PROPERTY TAX, PROPERTY TAXES, PUBLIC PLACES, PURCHASING POWER, QUANTITY OF CIGARETTES, RATE OF RETURN, RATE OF RETURN ON CAPITAL, REGRESSIVE TAX, REGRESSIVE TAXES, RESPIRATORY DISEASES, SALES TAXES, SAVINGS, SHAREHOLDERS, SINGLE TAX, SMOKER, SMOKERS, SMOKING, SMOKING BEHAVIOR, SMOKING HABIT, SMOKING IN PUBLIC, SMOKING PREVALENCE, STATISTICAL ANALYSIS, SUPPLY CURVE, TAX ADMINISTRATION, TAX BASE, TAX BURDENS, TAX CHANGES, TAX CREDIT, TAX EXPENDITURE, TAX INCIDENCE, TAX LEGISLATION, TAX POLICIES, TAX POLICY, TAX RATE, TAX RECEIPTS, TAX REVENUE, TAX SHIFTING, TAX SYSTEM, TAXPAYERS, TEENAGE SMOKERS, TOBACCO, TOBACCO COMPANIES, TOBACCO CONSUMPTION, TOBACCO CONTROL, TOBACCO CONTROL INITIATIVES, TOBACCO CONTROL MEASURES, TOBACCO CONTROL POLICIES, TOBACCO DEMAND, TOBACCO EXPENDITURES, TOBACCO INDUSTRY, TOBACCO POLICY, TOBACCO PRICES, TOBACCO PRODUCTS, TOBACCO PURCHASES, TOBACCO TAX, TOBACCO TAX INCREASES, TOBACCO TAXATION, TOBACCO TAXES, TOBACCO USE, TOBACCO USERS, TOBACCO-RELATED DISEASES, TOBACCO-RELATED ILLNESS, TOBACCO-RELATED ILLNESSES, TREASURY, UTILITY FUNCTION, VERTICAL EQUITY, WAGE RATES, WAGES, WEALTH, WEALTH TAX, WHOLESALE PRICE, WORLD MARKET,
Online Access:	http://documents.worldbank.org/curated/en/2013/01/18136559/equity-issues-tobacco-poor https://hdl.handle.net/10986/16265
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