The impact of sin tax on the consumer’s demand for cigarettes
The raise in tax is one of the most valuable gauges to lessen the utilization of a good. Just the same as other taxes, a sin tax is charged to lift up proceeds for government expenditures. Different from other taxes, a sin tax is often imposed with an intention of reducing the public’s consumption of a good. On the other hand, when you articulate about taxing cigars and alcoholic beverages, consumption emerge to be unpredictable especially to the mass.
The policymakers’ main concern is that an increase in cigars and alcoholic beverages taxes could have an inconsistent impact on the underprivileged (Jose Julian Escario, Jose Alberto Molina, 2004). Escario, et al. also found that the increase in the actual worth of taxation on cigarettes has had slight effect on demand from smokers for the reason that demand has been inelastic. But there are signs that a tipping point may have been reached. Sin taxes are also the most effective way to influence adolescent people to refrain from smoking. On the other hand, an increase in the price on cigarettes has had slight effect on demand from smokers since demand has been inelastic. Thus, what really is the elasticity of the demand for cigarettes to the mass? The purpose of this paper is to stimulate the impact of sin tax on the consumption of cigarettes of regular smokers.
Point of view
From an economic perspective, the researcher finds it more sensible to consume the standard cigarette because of the satisfaction it yields to the consumers. It is also efficient for the societal well being of the country because the tax charged will still be returned to us eventually. In addition, based from the study, the researcher would rather utilize the standard good at a lesser demand rate rather than substituting the good in view of the fact that substituting the good would not be as satisfying from what you have...