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Chapter 17 The Design, Administration, and Potential Revenue of Tobacco Excises Emil M. Sunley, Ayda Yurekli, and Frank J. Chaloupka This
chapter discusses the design and administration of tobacco
excise taxes. With respect to the design, the issues
reviewed here include the choice of tobacco products to
excise, the treatment of imports, and the choice of specific
taxes (based on quantity) versus ad valorem taxes
(based on value). We also briefly discuss the impact of
smuggling on tax revenues. With respect to tax
administration, the issues discussed here include the use of
registration and licensing to facilitate administration,
bonding, physical control of tobacco products, and the use
of tax stamps. Finally, the revenue generating potential of
higher cigarette taxes is examined. Using data on tax
revenues, would raise cigarette tax revenues by nearly 7%,
with relatively larger increases in revenues in high-income
countries and smaller, but sizable, increases in revenues in
low-income and middle-income countries.
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