IMF Release: How to Design and Enforce Tobacco Excises

Proposition 56 to raise tax rate for tobacco in Calafornia from one of lowest in the country to one of the highest
October 9, 2016
Monograph Released: The Economics of Tobacco and Tobacco Control
January 13, 2017

Taxing tobacco can help raise much needed revenue and save lives, but it needs to be done well. This “How-to” note provides guidance on the basics of tobacco taxation. How high should tobacco taxes be? Should we use ad valorem or specific taxes? What are the key elements of an efficient tax administration that will secure the tax base and prevent illegal trade? These are important questions that need to be addressed and this note provide a sound first step towards solid policy decisions.

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