Consequences of Tobacco Tax in Rich and Poor Smokers in China: An ECEA
2015
This study used the extended cost-effectiveness analysis methods to estimate, across income quintiles of the male population, the health benefits (years of life gained), the additional tax revenues raised, the net financial consequences for households, and the financial risk protection provided to households, that would be caused by a 50% increase in tobacco price through excise tax fully passed onto tobacco consumers in China.
The analysis showed that a 50% increase in tobacco price through excise tax would lead to 231 million years of life gained over 50 years, a third of which would be gained in the lowest income quintile. The excise tax would also result in a gain of US$703 billion, 14% of which would come from the poorest income quintile, compared with 24% from the richest income quintile. The excise tax would increase overall household expenditures on tobacco by $376 billion but decrease these expenditures by $21 billion in the lowest income quintile and would reduce expenditures on tobacco-related disease by $24 billion (28% of which would benefit the lowest income quintile). Finally, it would provide financial risk protection worth $1.8 billion, of which 74% is concentrated in the lowest income quintile.
Consequences of Tobacco Tax in Rich and Poor Smokers in China: An ECEA
Source:
Verguet S, Gauvreau CL, Mishra S et al. The Consequences of Tobacco Tax on Household Health and Finances in Rich and Poor Smokers in China: An Extended Cost-Effectiveness Analysis. The Lancet Global Health 2015; 3 (4): e206-e216. https://doi.org/10.1016/S2214-109X(15)70095-1