Table 3

Impact on consumption and production in tobacco sectors under alternative policy implementation routes

BidisCigarettesSmokeless
Change in consumption (value)
 Base value (million USD)4744.9314 518.541263.71
 Taxing tobacco consumption3.58%11.39%3.78%
 Taxing raw tobacco3.58%11.39%3.78%
Change in consumption (volume)
 Taxing tobacco consumption−10.00%−10.00%−10.00%
 Taxing raw tobacco−10.00%−10.00%−10.00%
Change in production (value)
 Base value (million USD)4416.9614 320.191475.99
 Taxing tobacco consumption−8.39%−7.73%−6.79%
 Taxing raw tobacco1.96%3.14%1.64%
Change in production (volume)
 Taxing tobacco consumption−8.32%−7.72%−6.66%
 Taxing raw tobacco−9.27%−10.33%−7.34%
Marginal increase in tax burden
 Taxing tobacco consumption13.69%21.50%13.82%
 Taxing raw tobacco15.26%30.25%15.24%
  • All baseline numbers in this model are in millions of USD. Volume change is the value change in constant prices. Therefore, volume changes shown here are the same as value changes in constant prices.