Study On The Consumption Effect Of Tobacco And Alcohol Consumption Tax

As we all know,our country’s tobacco and alcohol consumption tax revenue is an important source of national revenue,but smoking and excessive drinking will bring a series of negative social effects on health and family harmony.Therefore,in recent years,China has constantly adjusted the tax system reform of tobacco and alcohol consumption tax,but it is basically around increasing the tax rate to affect the price of tobacco and alcohol,so as to reduce residents’ consumption of tobacco and alcohol products.However,from the perspective of the implementation effect of the policy,the consumption effect of tobacco and alcohol consumption tax is not satisfactory.Not every policy adjustment can achieve the effect of increasing the price of tobacco and alcohol products and reducing the consumption of tobacco and alcohol.Through combing the relevant literature at home and abroad,it is found that domestic and foreign scholars have little research on the consumption effect of tobacco and alcohol consumption tax,so this paper empirically studies the consumption effect of tobacco and alcohol consumption tax on the basis of theoretical research,combined with Chinese empirical data,from two aspects of scale and structure.The main contents of this paper are as follows.First,the theoretical basis and mechanism of consumption effect of tobacco and alcohol consumption tax.The government levies consumption tax on the units and individuals that produce tobacco and alcohol products.The producers pass the tax burden on to consumers by raising the price of the products.The tobacco and alcohol products conform to the demand elasticity theory,so the rising price will reduce the demand of residents for tobacco and alcohol products.The second is to analyze the current situation of consumption effect of tobacco and alcohol consumption tax in China,and discuss the influence of tobacco and alcohol consumption tax on the price,consumption volume and consumption structure of tobacco and alcohol products in turn.Under the influence of tobacco and alcohol consumption tax,the growth rate of retail price of tobacco is decreasing in general,while the retail price of alcoholic products is growing at a quite opposite rate;the consumption of cigarettes and Baijiu is generally on the rise;the proportion of tobacco consumption expenditure has decreased slightly,and the proportion of alcohol consumption expenditure has decreased slightly after the adjustment of each consumption tax policy.Third,empirical analysis of consumption effect of tobacco and alcohol consumption tax.Using the panel vector auto regressive method,this paper makes an empirical test on the consumption tax revenue of tobacco and alcohol and the consumption expenditure of tobacco and alcohol of residents in 30 provinces and cities of China from 2002 to 2012 from the scale and structure.Scale empirical analysis studies the impact of tobacco and alcohol consumption tax income on residents’ consumption expenditure of tobacco and alcohol.The results show that the effect of Chinese tobacco and alcohol consumption tax on residents’ consumption of tobacco and alcohol is generally enhanced.Structure empirical analysis studies the influence of tobacco consumption tax income to resident’s tobacco consumption expenditure and the influence of alcohol consumption tax income to resident’s tobacco consumption expenditure.The results show that the tobacco consumption tax can restrain the consumption of tobacco in the short term and improve the consumption structure to a certain extent,but the long-term effect is limited;The inhibitory effect of alcohol consumption tax on residents’ alcohol consumption is gradually increasing.Therefore,from the empirical results,the effect of tobacco and alcohol consumption tax on residents’ consumption is not obvious.Fourth,we put forward some policy suggestions to improve Chinese tobacco and alcohol consumption tax,in order to provide a reference for the reform of tobacco and alcohol consumption tax in the future.The suggestions including increasing the tax rate of tobacco and alcohol consumption tax,adjusting the collection link of tobacco and alcohol consumption tax,implementing the tax calculation method based on quantity,and changing the tobacco and alcohol consumption tax from in price tax to out of price tax.