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Regressive or Progressive? : The Effect of Tobacco Taxes in Ukraine

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collection.link.98
https://openknowledge.worldbank.org/handle/10986/2206
collection.name.98
Other Public Sector Study
dc.contributor.author
Fuchs, Alan
dc.contributor.author
Meneses, Francisco
dc.date.accessioned
2017-10-25T19:18:23Z
dc.date.available
2017-10-25T19:18:23Z
dc.date.issued
2017-09-27
dc.description.abstract
Tobacco taxes are usually considered regressive as the poorest individuals allocate larger shares of their budget towards the purchase of tobacco related products. However, because these taxes also discourage tobacco use, some of the most adverse effects and their economic costs are reduced, including lower life expectancy at birth, higher medical expenses, increased years of disability among smokers, and the effects of secondhand smoke. This paper projects the effects of an increase in the tobacco tax on household welfare in Ukraine. It considers three price-elasticity scenarios among income deciles of the population. Results show that although tobacco taxes are often criticized for being regressive in the short-run, a more comprehensive scenario that includes medical expenses and working years, the benefits of tobacco taxes far exceed the increase in tax liability, benefitting in large measure lower income households. Our results also indicate that lower health expenditure seems to be the main driver because of the reduction in tobacco-related diseases that require expensive treatments. Tobacco taxes are also associated with positive distributional effects related to the higher long-term price elasticities of tobacco consumption.
en
dc.identifier
http://documents.worldbank.org/curated/en/765671507036953947/Regressive-or-progressive-the-effect-of-tobacco-taxes-in-Ukraine
dc.identifier.uri
http://hdl.handle.net/10986/28575
dc.language
English
dc.publisher
World Bank, Washington, DC
dc.rights
CC BY 3.0 IGO
dc.rights.holder
World Bank
dc.rights.uri
http://creativecommons.org/licenses/by/3.0/igo
dc.subject
TAXATION
dc.subject
REGRESSIVE TAX
dc.subject
TOBACCO CONTROL
dc.subject
TOBACCO TAX
dc.title
Regressive or Progressive?
en
dc.title.subtitle
The Effect of Tobacco Taxes in Ukraine
en
dc.type
Report
en
okr.date.disclosure
2017-10-03
okr.doctype
Economic & Sector Work :: Other Public Sector Study
okr.doctype
Economic & Sector Work
okr.docurl
http://documents.worldbank.org/curated/en/765671507036953947/Regressive-or-progressive-the-effect-of-tobacco-taxes-in-Ukraine
okr.googlescholar.linkpresent
yes
okr.identifier.externaldocumentum
090224b08504e8d7_1_0
okr.identifier.internaldocumentum
28024185
okr.identifier.report
120205
okr.imported
true
okr.language.supported
en
okr.pdfurl
http://documents.worldbank.org/curated/en/765671507036953947/pdf/WP-P154568-UkraineRegressiveorProgressiveTobacco-PUBLIC.pdf
en
okr.region.administrative
Europe and Central Asia
okr.region.country
Ukraine
okr.topic
Public Sector Development :: Public Sector Economics
okr.topic
Macroeconomics and Economic Growth :: Taxation & Subsidies
okr.topic
Health, Nutrition and Population :: Public Health Promotion
okr.topic
Health, Nutrition and Population :: Tobacco Use and Control
okr.unit
HNP ECA Region (GHN03)

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