A huge collection of 3400+ free website templates www.JARtheme.COM WP themes and more at the biggest community-driven free web design site

ZAY Strateji Working Paper No: 1

How Do Indirect Taxes on Tobacco Products Affect Inflation? 

This study examines the effects of price adjustments in the tobacco sector on inflation in Turkey. The findings show that the taxes on tobacco products increase inflation in the short-term. However, the effect is rather limited, a 16 basis points increase in inflation if the current 65.25% Special Consumption Tax (SCT) increases by 25 basis points. Factors that cause inflation in the long-run are cost and demand. The cost-driven impact of tobacco prices on inflation is rather limited due to the low weight of this product in the consumption basket. Nevertheless, the structure of the tax multiplier used in tobacco taxation increases cigarette prices in a non-linear fashion and, therefore, has the potential to disrupt inflationary expectations. 

 

You may click here to find the English version of the paper.

Drafted by Cem Çakmaklı, Selva Demiralp, Sevcan Yeşiltaş and Muhammed Yıldırım with the cooperation of ZAY Strateji and Philip Morris Sabancı. 

Etiketler: WORKING PAPER

Analizler

Jeffrey D. Sachs ’in “Why Rich Cities Rebel” başlıklı yazısı

Having lost touch with public sentiment, officials in Paris, Hong Kong, and Santiago failed...

Read more

Analizler

OECD leading multilateral efforts to address tax challenges from digitalisation of the economy

Today the OECD Secretariat published a proposal to advance international negotiations to ensure...

Read more

Analizler

Thomas F. Alexander’in “The Global Informal Economy: Large but On The Decline” başlıklı yazısı

The informal economy, which is economic activity that falls outside the regulated economy and...

Read more