Back to Basics #11: Setting the Ideal Tobacco Tax Rate
The eleventh Back2Basics policy brief has just been published, and discusses: Setting the Ideal Tobacco Tax Rate. The brief discusses the importance of tobacco taxation policy, and in particular, reducing the affordability of tobacco products: "In order to reduce tobacco consumption, it is necessary to increase taxes regularly, and by large enough magnitudes to ensure that price increases are significantly larger than increases in income. The larger the tax increase, the more rapidly cigarette affordability will decline."
See the REEP B2B briefs #1 to #10 here.
Cite: Blecher, E. and Filby, S. (2020). Setting the Ideal Tobacco Tax Rate, REEP Back to Basics Policy Brief: B2B#11 July 2020, University of Cape Town.