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Impact of Cigarette Tax Increase in India

2020

This article, published in Gates Open Research, examines the impact of a one-time large cigarette price increase, through an increase in excise tax, on health and financing outcomes in four Indian states. Extended cost-effectiveness analysis (ECEA) is used to estimate, across income quintiles, the life-years gained, treatment cost averted, number of men avoiding catastrophic health expenditures and extreme poverty, and additional tax revenue collected with a cigarette price increase to Indian Rupees (INR) 10 plus 10% ad valorem. The results indicate that a cigarette tax increase can provide significant health and economic gains and is a pro-poor policy for India.

 

Source:

Wu DC, Sheel V, Gupta P et al. Impact of Cigarette Tax Increase on Health and Financing Outcomes in Four Indian States. Gates Open Research 2020. https://doi.org/10.12688/gatesopenres.13127.1