The association between tax structure (the proportion of specific tax among total excises; an indicator for tiered tax structure) and price variability, 17 ITC Countries
| Price variability | (75–25%)/50% | (90–10%)/50% | (95–5%)/50% | (99–1%)/50% |
|---|---|---|---|---|
| (1) | (2) | (3) | (4) | |
| Per cent Specific among total excises in percentage points | −0.001* | −0.002** | −0.004** | −0.006* |
| (0.001) | (0.001) | (0.002) | (0.004) | |
| [−0.431] | [−0.282] | [−0.356] | [−0.329] | |
| Tiered (specific/mixed/ad valorem) | 0.325*** | 0.365** | 0.827*** | 1.884** |
| (0.125) | (0.179) | (0.239) | (0.782) | |
| [1.469] | [0.607] | [1.038] | [1.385] | |
| N | 78 | 78 | 78 | 78 |
*p≤0.1, **p≤0.05, ***p≤0.01. Marginal effects or coefficients are reported. SEs clustered at the country level are reported in parentheses and corresponding elasticity estimates are reported in square brackets. Stata module ‘margins, eydx’ was used to obtain elasticity estimates for the tiered structure and ‘margins, eyex’ was used for the share of specific among total excise taxes. Price variability is measured using differences between upper and lower 25, 10, 5, and 1 centiles divided by the median price. All regressions are estimated using GEE. Controls include year fixed effects, a dummy for EU countries that are subject to EU tax floor and burden, and a dummy for India, Canada, the US where states or provinces have jurisdiction on cigarette excise taxes and cigarettes can be sold without excise taxes in First Nations/Indian reservations.
EU, European Union; GEE, Generalised Estimating Equation; ITC, International Tobacco Control Policy Evaluation.