2003年-世界发展银行全球_Higher_Tobacco_Prices_and_Taxes_in_Southeast_Asia___An_Effective_Tool_to_Reduce_Tobacco_Use_Save_Lives_and_Generate_Revenue_72页_819kb

Summary of "Higher Tobacco Prices and Taxes in South-East Asia: An Effective Tool to Reduce Tobacco Use, Save Lives and Generate Revenue"

Core Content

This document is a Health, Nutrition and Population (HNP) Discussion Paper published by the World Bank in 2003. It is authored by G. Emmanuel Guindon, Anne-Marie Perucic, and David Boisclair, and is part of the Economics of Tobacco Control sub-series, jointly produced with the Tobacco Free Initiative of the World Health Organization. The paper focuses on the economic and public health impacts of increasing tobacco prices and taxes in South-East Asia, and argues that such measures are effective in reducing tobacco use, saving lives, and generating government revenue.

Main Points

1. Health Consequences and Costs of Tobacco Use

• Tobacco use is associated with over 30 diseases, including hypertension, heart disease, stroke, chronic respiratory disease, tuberculosis, and cancers of the lung, oesophagus, bladder, pancreas, mouth, pharynx, and larynx.
• In 2000, tobacco use was responsible for 4.9 million deaths globally.
• By 2020, this number is expected to nearly double, with 70% of these deaths occurring in developing countries.
• Second-hand smoke is also a significant health risk, confirmed as carcinogenic by the International Agency for Research on Cancer (IARC) in 2002.
• Tobacco use contributes to poverty and malnutrition, especially among low-income and uneducated populations.
• In Nepal, the lowest income quintile spent 9.6% of all expenditures on tobacco products in 2001.
• In Myanmar, this share was 4.0%.

2. Price Trends and Affordability

• Real prices of tobacco products in South-East Asia (Bangladesh, India, Indonesia, Nepal, Sri Lanka, Thailand) remained stable during the 1980s and 1990s, with India and Thailand being exceptions.
• In Bangladesh, real prices increased in the early 1990s but then decreased to near original levels.
• Costliness (relative price to GDP per capita) has decreased in most South-East Asian countries over the past two decades, making tobacco more affordable.
• In India, tobacco products became 50% more affordable between 1980 and 2000.
• However, in New Zealand, real prices tripled during the same period, making tobacco less affordable.

3. Taxation and Government Revenue

• The World Health Organization (WHO) and World Bank recommend that tobacco prices rise by at least 5% per year in real terms.
• Tobacco taxes can be specific (based on quantity) or ad valorem (based on value), and include import duties and general consumption taxes.
• Tax incidence varies significantly across countries and products:
  • In Indonesia, tax incidence on domestic hand-rolled kretek is as low as 8-10% of retail price.
  • In Sri Lanka, it can be as high as 85%.
• Government revenue from tobacco taxes has increased over time, especially in Bangladesh, India, Indonesia, Nepal, Thailand, and Sri Lanka.
• The potential revenue from tobacco taxes is substantial, with the report emphasizing the revenue-generating potential of higher taxes.

4. Demand for Tobacco Products

• Econometric studies consistently show that higher prices lead to reduced tobacco use, especially among young people and low-income groups.
• A 10% increase in price is associated with a 4% reduction in use in developed countries and 8% in developing countries.
• The report includes new time series and household-level analyses to support this claim.

5. Contraband Trade and Industry Conduct

• Smuggling and price fixing are major issues in South-East Asia.
• Smuggling is attributed more to general corruption than to tax and price differentials.
• The tobacco industry is often implicated in smuggling activities, which can undermine the effectiveness of tax increases.
• The report recommends deterrence, detection, and punishment of smuggling to ensure the success of tobacco control policies.

6. Policy Implications

• Tobacco tax increases are a cost-effective and powerful tool for reducing tobacco use.
• These increases can lead to public health improvements, reduced morbidity and mortality, and increased government revenue.
• Collaboration between health and finance ministries is essential to implement effective tobacco control policies.
• The report suggests that raising tobacco taxes is a viable strategy for developing countries, especially given the negative economic and health impacts of tobacco use.

Key Information

• Countries examined: Bangladesh, India, Indonesia, Nepal, Thailand, Sri Lanka, Maldives, Myanmar.
• Data sources: Includes household-level data, time series data, and literature reviews.
• Key findings:
  • Tax increases are effective in reducing tobacco use.
  • Higher taxes can increase government revenue.
  • Smuggling is a significant challenge, but not necessarily a result of high taxes.
• Recommendations:
  • Implement comprehensive tobacco control policies, including tax increases.
  • Ensure collaboration between health and finance ministries.
  • Address smuggling through deterrence, detection, and punishment.
  • Use tax revenues for public health initiatives.

Conclusion

The report concludes that raising tobacco prices and taxes in South-East Asia is an effective and cost-effective strategy to reduce tobacco use, save lives, and generate revenue. It emphasizes that tax increases should not be avoided due to fears of smuggling or economic loss, and that stronger tobacco control policies are needed to address the growing health and economic burden of tobacco in the region.