Tobacco Excise Taxation And External Cost Of Tobacco Consumption

Due to the particularity of tobacco consumption,the tobacco tax rate is high and it provides a lot of fiscal revenue,so it has an effective macro-control power.In order to complete the tax legalism in China,to achieve the goal that people abide by the tax law and make good use of the tax law,it is necessary to clarify the basis of the excise tax.The aim of this article is to explore the purpose of taxation in tobacco consumption tax,and adjust the scope and measures of consumption tax on the eve of the consumption tax legislation to make it more suitable for China development.Compare with other taxation basis of tobacco consumption tax,this article starts from the purpose of consumption tax that can make up the negative externality of tobacco.To achieve this goal,the article introduces the concept development,classification,influence and correction of externality theory.After understanding the concept of externality,it is necessary to study the overall situation of the Chinese tobacco tax system.Firstly,we should clarify the design principles of the tobacco monopoly system,and analyze the taxation status of the tobacco industry,so as to grasp the development of the tobacco industry from a macro perspective.Secondly,the article will analyze taxation function and possible problems of the consumption tax in the tobacco industry based on the history of it,and grasp the tobacco consumption tax from the institutional level,so as to lay a theoretical foundation for the next empirical analysis.When carry out a depth-analysis of China's tobacco tax system,it is unwise for us to separate from the comparison of tobacco taxes in the world.The article will compare the tobacco tax system in China and the other country to clarify the particularity of China's tax system.At the same time,it will focus on the outstanding characteristics of the US tobacco tax and provide experience and ideas for the reform of China's tobacco tax system.The article uses the attribution analysis method and the total cost method to estimate the external cost of tobacco on medical,environmental and disaster.In terms of the estimate on medical cost,the article will estimate the normal cost of tobacco disease as well as potential productivity loss and death price on smoking.In terms of the analysis on environmental cost,the paper measures the cost because the polluted air,acid rain and solid waste due to tobacco consumption.In terms of the estimation on disaster cost,the article calculates the economic losses on fires caused by smoking.we believe we can get an initial understanding of the full cost of tobacco external costs from the above three aspects.In terms of empirical analysis,after accounting for the negative external cost of tobacco,the article makes a connection between the value obtained from previous calculation and the tax revenue of tobacco consumption tax in each year.The article correlates the tax revenue divided by the various taxation policies with the negative external cost,so as to evaluate the effect of various policies on the externalities.So to fully understand the effect of the tobacco consumption tax system.The article suggests that China's tobacco consumption system can be reformed from the perspectives of raising the tax rate,changing the ad valorem tax to the specific tax,changing the internal tax to the extra-tax,reclassifying the cigarette brands,and setting up special funds.Through these methods,efficient development of consumption tax can be achieved.