Publication: Estimating the Distributional Impact of Increasing Taxes on Tobacco Products in Armenia: Results from an Extended Cost-Effectiveness Analysis
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2017-04-14
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2017-04-18
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At present, tobacco taxes in Armenia are among the lowest in Europe and Central Asia. Global experience has shown that increasing taxes on tobacco is one of the most cost-effective public health interventions. This is particularly relevant for Armenia, where smoking is among the leading risk factors of mortality among the population.
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“Postolovska, Iryna; Lavado, Rouselle F.; Tarr, Gillian; Verguet, Stephane. 2017. Estimating the Distributional Impact of Increasing Taxes on Tobacco Products in Armenia: Results from an Extended Cost-Effectiveness Analysis. © World Bank. http://hdl.handle.net/10986/26386 License: CC BY 3.0 IGO.”
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The ultimate distributional effect on welfare of the increasein the price of cigarettes due to tax increases will then depend on assessing the potentialbenefits against the short-term costs.Publication Long-Run Impacts of Increasing Tobacco Taxes(World Bank, Washington, DC, 2018-02-26)Tobacco taxes are considered an effective policy tool to reduce tobacco consumption and produce long-run benefits that outweigh the costs associated with a price increase. Through this policy, some of the most adverse effects and economic costs of smoking can be reduced, including shorter life expectancy, higher medical expenses, added years of disability among smokers, and the effects of secondhand smoke. Nonetheless, tobacco taxes are often considered regressive because low-income households tend to allocate a larger share of their budgets to purchasing tobacco products. 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