Excise Tax Revenue Maximization

1974 ◽  
Vol 40 (4) ◽  
pp. 657 ◽  
Author(s):  
William F. Lott ◽  
Stephen M. Miller
Keyword(s):  
Tax Revenue ◽  
Revenue Maximization ◽  
Excise Tax

scholarly journals Health Impact and Cost-Effectiveness of Financing Fruit and Vegetable Subsidies with a Sugar-Sweetened Beverage Tax in the US: A Micro-Simulation Study

2020 ◽  
Vol 4 (Supplement_2) ◽  
pp. 1721-1721
Author(s):  
Matti Marklund ◽  
Yujin Lee ◽  
Junxiu Liu ◽  
Stephen Sy ◽  
Shafika Abrahams-Gessel ◽  
...  
Keyword(s):  
Cost Effectiveness ◽  
Healthcare Costs ◽  
Cost Savings ◽  
Tax Revenue ◽  
Fruit And Vegetable ◽  
Sugar Sweetened Beverage ◽  
Excise Tax ◽  
Sweetened Beverage ◽  
Life Years ◽  
The Us

Abstract Objectives Financial incentives and disincentives are effective tools for improving food purchases and health. Healthy food subsidies have only been considered for vulnerable populations and can be costly, while sugar-sweetened beverage (SSB) taxes can be considered financially regressive and punitive. The potential joint health and economic impacts of combining these approaches at a national scale have not been evaluated. Methods A validated microsimulation model, CVD PREDICT, was used to estimate reductions in CVD events, diabetes cases, gains in quality-adjusted life-years (QALYs), costs, and cost-effectiveness of a national U.S. fruit and vegetable subsidy fully or partly financed by SSB excise tax revenue ($0.01/tsp of added sugar). For the fully financed subsidy, cost could not exceed net tax revenue; while for the partly financed subsidy, costs were greater and ensured that taxes paid did not exceed subsidies received in either low or high income subgroups. Model inputs included national demographic and dietary data from NHANES 2009–2014; policy effects on consumer intakes, industry responses, and diet-disease effects from meta-analyses; and policy costs (tax and subsidy implementation, subsidy costs, industry reformulation), and health-related costs (formal/informal healthcare costs, productivity costs) from published sources. Findings were evaluated over 10 years and lifetime, with costs (in constant 2019 USD) and QALYs discounted at 3% annually. Results Both the fully and partly financed joint intervention was estimated to be cost-saving, compared to a base-case scenario accounting for gradual voluntary SSB industry reformulation. At 10 years, the fully financed intervention would prevent approximately 1.11M CVD events, 0.14M CVD deaths, and 0.34M diabetes cases, gain 0.87M QALYs, generate 1.49B net revenue, and save $56B in formal healthcare costs. Corresponding values for the partially financed intervention were 1.42M, 0.17M, 0.34M, 1.18M, −13.9B, and $65B. Estimated benefits and cost-savings were approximately 4–15 fold higher over a lifetime. Conclusions A joint national strategy combining revenue from an SSB excise tax to fully or partially finance fruit and vegetable subsidies could generate substantial health gains and cost-savings for the US, while minimizing government spending. Funding Sources NIH, NHLBI.

scholarly journals Impact of Lithuanian tax reform to companies results

2014 ◽  
pp. 162-177
Author(s):  
Jovita Kalantaitė ◽  
Rasa Subačienė
Keyword(s):  
Income Tax ◽  
Social Insurance ◽  
Tax Reform ◽  
Shadow Economy ◽  
Value Added ◽  
Corporate Income Tax ◽  
Tax Revenue ◽  
Personal Income Tax ◽  
Excise Tax ◽  
National Budget

Global economic crisis reached Lithuania in 2008, as a response to ongoing economic downturn, the government of the Republic of Lithuania introduced tax reform. Analysis of factors determined by the tax reform will be presented in the article. However, main arguments will concentrate on evaluation of companies activities and results as business is one of the key pillars on which Lithuanian economy is built on: taxes form a significant part of individual company’s expenses and on the other side – taxes are a main stream of revenue for the national budget. The most significant taxes in overall national budget composition could be named as the following: personal income tax, social insurance taxes, value added tax, corporate income tax, excise tax and others. In relation to the global crisis tax income has decreased significantly in year 2009 and at the end of year 2012 has still not reached the level of year 2008. However, from the company’s perspective, employees related taxes are considered as most significant as they form almost a half of total taxes paid by companies. Decrease of taxes related to payroll (personal income tax, social insurance taxes) was followed by growth of unemployment, decrease on average salary and growth of the shadow economy. Drop in GDP, inflation and decline in sales made impact on decrease of tax revenue of value added tax, as shadow economy and reduced consumption of excisable goods influenced the value of excise tax revenue. The tax revenue of corporate income tax was influenced by decline of net profit and profitability, increased number of bankruptcy.

scholarly journals Fiscal and Public Health Impact of a Change in Tobacco Excise Taxes in Ghana

2020 ◽  
Author(s):  
Fenny Ama Pokuaa ◽  
Aba Obrumah Crentsil ◽  
Christian Kwaku Osei ◽  
Felix Ankomah Asante
Keyword(s):  
Public Health ◽  
Tobacco Control ◽  
Primary Data ◽  
Tax Revenue ◽  
Tax Administration ◽  
Tax Structure ◽  
Ad Valorem Tax ◽  
Excise Tax ◽  
The Government ◽  
Ad Valorem

This working paper predicts the fiscal and public health outcomes from a change in the excise tax structure for cigarettes in Ghana. More than 5,000 people are killed by diseases caused by tobacco every year in Ghana (Tobacco Atlas 2018). Currently the country has a unitary tax administration approach, with a uniform ad valorem tax structure on all excisable products, including tobacco. However, the ECOWAS directive on tobacco control, in line with the WHO Framework Convention on Tobacco Control (WHO 2003), recommends a simple tax structure – using a mixed excise system with a minimum specific tax floor to overcome the limitations of an ad valorem system on tobacco products, especially cigarettes. The study therefore simulates mixed tax policy interventions, and assesses their effect on government revenue and public health relative to the current ad valorem tax system. Primary data collection of tobacco prices in three geographical zones of the country was conducted in February 2020, across both rural and urban localities. This was supported with secondary data from national and international databases. Based on the assumption that Ghana adopts a mixed tax structure, the simulation shows that, if the government imposes a specific excise tax of GH₵4.00 (US$0.80) per pack in addition to the current ad valorem rate of 175 per cent of the CIF value, the average retail price of a cigarette pack would increase by 128 per cent, cigarette consumption decrease by 27 per cent, tobacco excise tax revenue increase by 627 per cent, and overall tobacco-related government tax revenue increase by 201 per cent.1 Additionally, there would be significant declines in smoking prevalence (3.3%), smoking intensity (1,448 cigarettes per year), and 3,526 premature smoking-related deaths would be avoided. The paper advocates for a strong tax administration and technical capacity, with continuous commitment by the government to adjust the tax rate in line with the rate of inflation and per capita income growth.

Crossing the Line: Direct Estimation of Cross-Border Cigarette Sales and the Effect on Tax Revenue

2008 ◽  
Vol 8 (1) ◽  
Author(s):  
Lesley Chiou ◽  
Erich Muehlegger
Keyword(s):  
Choice Model ◽  
Policy Issue ◽  
Tax Avoidance ◽  
Border Crossing ◽  
Tax Revenue ◽  
Excise Tax ◽  
Excise Taxes ◽  
Cross Border ◽  
Public Policy Issue ◽  
Demand Models

Abstract Differences in excise taxes across jurisdictions create incentives for consumers to cross the border and to purchase in lower-tax jurisdictions. This paper introduces a discrete choice model to examine tax avoidance and state border crossing in the market for cigarettes. We exploit a rich dataset of consumer location choices and demographics to estimate a consumer's tradeoff between distance and price when choosing a location to maximize utility. Using the estimates from our location and demand models, we reconsider a recent public policy issue among states and simulate tax avoidance under alternative cigarette excise tax levels.

Caloric Sweetened Beverage Taxes: A Toothless Solution?

2017 ◽  
Vol 14 (1) ◽  
Author(s):  
Evan Cohen ◽  
Jehan deFonseka ◽  
Richard McGowan
Keyword(s):  
National Level ◽  
Government Support ◽  
Tax Revenue ◽  
Human Beings ◽  
Research Implementation ◽  
Excise Tax ◽  
Sweetened Beverage ◽  
Sin Taxes ◽  
The Impact ◽  
Broad Policy

AbstractWe lay out a framework for assessing if calorie sweetened beverage taxes are effective, and, concluding they are not, provide recommendations for better solutions. Similar taxes, known as sin taxes, generally have three specific goals: 1) to lower consumption of the offending substance or activity; 2) to minimize the black market; and 3) to generate government revenues. We find that on the whole, caloric sweetened beverage taxes fail to meet each of the criteria for effective sin taxes. They neither meaningfully lower consumption of caloric sweeteners generally, nor do they provide for a healthier alternative. They are straightforward to geographically circumvent, and there are many carve outs which are not taxed, dampening the impact they could have on the consumption of caloric sweeteners. Although these taxes are potentially a significant source of tax revenue, such collections are largely and disproportionately borne by the poor. Instead, we propose enacting a broad policy on a national level consisting of three components: 1) removing government support for caloric sweeteners, 2) levying a federal excise tax on caloric sweeteners at the producer level, and 3) investing in research, implementation of significant subsidies, and development and transmission of explicit government advice in favor of foods that are irrefutably beneficial for the vast majority of human beings.

scholarly journals IMPLEMENTATION EXCISE REGULATIONS OF VAPE LIQUID IN KPPBC TIPE MADYA CUKAI MALANG

2019 ◽  
Vol 3 (1) ◽  
pp. 9-21
Author(s):  
Joko Sumantri
Keyword(s):  
Social Networks ◽  
Research Method ◽  
New Product ◽  
Tax Revenue ◽  
Tobacco Products ◽  
Excise Tax ◽  
Descriptive Research ◽  
Qualitative Descriptive ◽  
The Government

The study of e-cigarettes (vape) associated with excise is quite difficult to find in Indonesia. Thus, this study becomes important for the government in evaluating the application of vape liquid excise tax rules to make it fairer for businesses. By using a qualitative descriptive research method, this study obtained the findings that in the working area of KPPBC Type Madya Cukai Malang, the implementation of new regulations related to vape had increased the tobacco excise tax revenue by <1% of the total tobacco excise revenue in the Malang region. In Malang, the contribution of excise revenue from vape liquid is still relatively small to the overall excise tax revenue from tobacco products considering the quantity that is still not massive because it is a new product subject to excise. Although the socialization efforts related to this matter can be said to be successful, it is still needed a mechanism for channeling information for example through social networks so that the latest policies and regulations that are implemented can be implemented more effectively.

Impact of Electric and Hybrid Vehicles on Highway Trust Fund in Alabama

2020 ◽  
Vol 2674 (9) ◽  
pp. 913-921
Author(s):  
Dan Xu ◽  
Huaguo Zhou ◽  
Chennan Xue ◽  
Jeffrey LaMondia
Keyword(s):  
Electric Vehicles ◽  
Hybrid Electric Vehicles ◽  
Hybrid Vehicles ◽  
Tax Revenue ◽  
State Agencies ◽  
Trust Fund ◽  
Fuel Tax ◽  
Excise Tax ◽  
Comprehensive Literature Review ◽  
The Impact

The objective of this paper is to help state agencies better understand the impact of electric and hybrid vehicles on the Highway Trust Fund and to develop a method for estimating proper annual registration fees for electric vehicles (EVs). In this study, a comprehensive literature review was conducted to summarize the background on electric and hybrid vehicles, current national and state policies and incentives, the trend of EV market in the U.S., and registration fees on electric and hybrid vehicles. As electric and hybrid vehicles do not contribute to fuel excise tax revenue, to compensate the lost tax revenues, some states charge additional annual registration fees to EV owners. To help the legislators determine the proper annual fees, a method was developed to assess the additional registration fees for EVs and plug-in hybrid electric vehicles (PHEVs) in Alabama. The collected data include number of registered electric and hybrid vehicles, fuel tax per gallon, and annual average mileage traveled by electric and hybrid vehicles in Alabama. The results of this study served as a key reference in the Rebuild Alabama Act that proposed an annual registration fee of $200 and $100 for EVs and PHEVs, respectively, which is effective since January 2020. The method in this study can be applied to other states for developing policies on registration fees for EVs and PHEVs to offset the fuel excise tax revenue loss.

scholarly journals Economic Impact of Imposing Excise Tax on Plastic Bottles of Drinks

2018 ◽  
Vol 63 (1) ◽  
pp. 38
Author(s):  
Eugenia Mardanugraha
Keyword(s):  
Economic Impact ◽  
Economic Performance ◽  
Income Tax ◽  
Value Added ◽  
Corporate Income Tax ◽  
Tax Revenue ◽  
Plastic Container ◽  
Excise Tax ◽  
Beverage Industry ◽  
The Government

This research simulates the effect of imposing excise tax on plastic container of drinks towards economic performance of beverage industry in Indonesia and governmentâ˘A ´Zs tax revenue. The results showed that by imposing excise tax on plastic cups and plastic bottles the government would lose tax revenue from value added tax (PPN) and corporate income tax (PPh badan) more than they gain additional revenue from excise tax. Hence, imposing excise tax on drink containers should serve a clear purpose and an undeniable reason. This paper recommends the government to develop proper excise infrastructure to extend the goods or services to be taxed. This paper also recommends the required stages for extending the excise tax. 

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