Distributional benefits of tobacco tax and smoke-free workplaces in China: A modeling study

Stéphane Verguet, Gillian Tarr, Cindy L. Gauvreau, Sujata Mishra, Prabhat Jha, Lingrui Liu, Yue Xiao, Yingpeng Qiu, Kun Zhao

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7 Scopus citations

Abstract

Background Tobacco taxation and smoke-free workplaces reduce smoking, tobacco-related premature deaths and associated out-of- pocket health care expenditures. We examine the distributional consequences of a price increase in tobacco products through an excise tax hike, and of an implementation of smoke-free workplaces, in China. Methods We use extended cost-effectiveness analysis (ECEA) to evaluate, across income quintiles of the male population (the large majority of Chinese smokers), the premature deaths averted, the change in tax revenues generated, and the financial risk protection procured (eg, poverty cases averted, defined as the number of individuals no longer facing tobacco-related out-of-pocket expenditures for disease treatment, that would otherwise impoverish them), that would follow a 75% increase in cigarette prices through substantial increments in excise tax fully passed onto consumers, and a nationwide total implementation of workplace smoking bans. Results A 75% increase in cigarette prices would avert about 24 million premature deaths among the current Chinese male population, with a third among the bottom income quintile, increase additional tax revenues by US$ 46 billion annually, and prevent around 9 million poverty cases, 19% of which among the bottom income quintile. Implementation of smoking bans in workplaces would avert about 12 million premature deaths, with a fifth among the bottom income quintile, decrease tax revenues by US$ 7 billion annually, and prevent around 4 million poverty cases, 12% of which among the bottom income quintile. Conclusions Increased excise taxes on tobacco products and workplace smoking bans can procure large health and economic benefits to the Chinese population, especially among the poor.

Original languageEnglish (US)
Article number020701
JournalJournal of global health
Volume7
Issue number2
DOIs
StatePublished - Nov 10 2017

Bibliographical note

Funding Information:
Acknowledgments: We thank Angela Pratt and Andrea Pastorelli for valuable comments on an earlier version of the manuscript, as well as two reviewers for helpful and constructive suggestions. Disclaimer: The content is solely the responsibility of the authors and does not necessarily represent the official views of the National Institutes of Health, the World Health Organization, and the United Nations Development Programme. Funding: This work was originally funded by the World Health Organization and the United Nations Development Programme. GT was initially supported in part by the National Institute of Environmental Health Sciences of the National Institutes of Health under award number T32ES015459.

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