Distributional Benefits of Tobacco Tax and Smoke-Free Workplaces in China
2017
This study used the extended cost–effectiveness analysis (ECEA) to evaluate, across income quintiles of the male population, the premature deaths averted, the change in tax revenues generated, and the financial risk protection procured, that would follow a 75% increase in cigarette prices through substantial increments in excise tax fully passed onto consumers, and a nationwide total implementation of workplace smoking bans.
A 75% increase in cigarette prices would avert about 24 million premature deaths among the current Chinese male population, with a third among the bottom income quintile. It would also increase additional tax revenues by US$46 billion annually, and prevent around 9 million poverty cases, 19% of which among the bottom income quintile. Implementation of smoking bans in workplaces would avert about 12 million premature deaths, with a fifth among the bottom income quintile, decrease tax revenues by US$7 billion annually, and prevent around 4 million poverty cases, 12% of which among the bottom income quintile.
Distributional Benefits of Tobacco Tax and Smoke-Free Workplaces in China
Source:
Verguet S, Tarr G, Gauvreau CL et al. Distributional Benefits of Tobacco Tax and Smoke–Free Workplaces in China: A Modeling Study. Journal of Global Health 2017; 7 (2): 020701. http://dx.doi.org/10.7189/jogh.07.020701