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Effects of Cigarette Tax on Cigarette Consumption and the Chinese Economy

Overview
Journal Tob Control
Specialty Psychiatry
Date 2002 May 30
PMID 12035000
Citations 31
Authors
T W Hu
Z Mao
Affiliations
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Abstract

Objectives: To analyse a policy dilemma in China on public health versus the tobacco economy through additional cigarette tax.

Methods: Using published statistics from 1980 through 1997 to estimate the impact of tobacco production and consumption on government revenue and the entire economy. These estimates relied on the results of estimated price elasticities of the demand for cigarettes in China.

Results: Given the estimated price elasticities (-0.54), by introducing an additional 10% increase in cigarette tax per pack (from the current 40% to 50% tax rate), the central government tax revenue would twice exceed total losses in industry revenue, tobacco farmers' income, and local tax revenue. In addition, between 1.44 and 2.16 million lives would be saved by this tax increase.

Conclusions: Additional taxation on cigarettes in China would be a desirable public policy for the Chinese government to consider.

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Raising cigarette excise tax to reduce consumption in low-and middle-income countries of the Asia-Pacific region:a simulation of the anticipated health and taxation revenues impacts.

Ho L, Schafferer C, Lee J, Yeh C, Hsieh C BMC Public Health. 2018; 18(1):1187.

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Socio-Economic Inequalities in Tobacco Consumption of the Older Adults in China: A Decomposition Method.

Si Y, Zhou Z, Su M, Wang X, Li D, Wang D Int J Environ Res Public Health. 2018; 15(7).

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The effects of a rise in cigarette price on cigarette consumption, tobacco taxation revenues, and of smoking-related deaths in 28 EU countries-- applying threshold regression modelling.

Yeh C, Schafferer C, Lee J, Ho L, Hsieh C BMC Public Health. 2017; 17(1):676.

PMID: 28931379 PMC: 5607587. DOI: 10.1186/s12889-017-4685-x.

References
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Hu T . Cigarette taxation in China: lessons from international experiences. Tob Control. 1997; 6(2):136-40. PMC: 1759542. DOI: 10.1136/tc.6.2.136. View
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