How To Design Excise Taxes on Alcoholic Beverages
IMF How To Notes, December 4, 2023
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- Canonical URL
- How To Design Excise Taxes on Alcoholic Beverages
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Bibliographic details
- Authors: Mario Mansour, Patrick Petit, Fayçal Sawadogo
- Published: December 4, 2023
- Series: IMF How To Notes
- DOI: https://doi.org/10.5089/9798400257902.061
Overview and Objective
- Examines the complex interplay between excise taxes on alcohol and alcoholic beverages, their revenue yield, and public health concerns related to alcohol consumption.
- Provides guidance on how countries can approach the design of excise taxes on alcohol based on theoretical principles and empirical evidence drawn from international experience.
- Aims to help design simple excise regimes that yield revenue while having the potential to contribute to reducing the externalities and internalities caused by alcohol consumption.
Key Questions Addressed
- How important is alcohol consumption, and what form does it take across countries of different income levels?
- What has been the trend in alcohol excise tax revenue?
- How can countries design simple excise regimes that yield revenue while contributing to reduced harm from alcohol consumption?
Principal Findings and Evidence (as summarized)
- The note draws on theoretical principles and empirical evidence from international experience to inform excise tax design.
- Emphasizes the dual objectives of revenue generation and public health impact (reducing externalities and internalities).
- Highlights the importance of aligning tax design with consumption patterns across countries of different income levels.
Policy Guidance and Design Principles (high-level)
- Design excise regimes that are simple and administrable.
- Structure excise taxes to balance revenue objectives with the potential to reduce harmful consumption.
- Consider alcohol content and consumption patterns when choosing tax bases and rates.
Content in this bundle
- How to Design Excise Taxes on Alcoholic Beverages