MODULE 3: TAXATION ON CIGARETTE

Effect of Taxation on Cigarette Smoking



a)

In general, the state cigarette tax and other revenues on tobacco products are among the most predictable, stable, reliable and revenues that states receive. Although these revenues do decline gradually over time, such as smoking and other tobacco use reduction, lower incomes are modest, predictable, and more than offset by corresponding reductions in public and private health sector and other economic costs caused by smoking.

Economic theory suggests several factors that would make the youth and young adults are smoking more sensitive to price increases than adults smoking.

These include: the fact ...