Dependence of government income on products dangerous to health
Incidence: In the case of developed-market economies, the three major categories, in terms of revenue collection, on which fiscal charges are levied on importation are mineral fuels (including petroleum), alcoholic beverages, and tobacco. For example revenues raised by developed market economy countries on tobacco alone were $22 billion in 1983. In the case of the UK, government revenue from alcohol consumption was Â£6,700 million in 1987-8. In Russia in 1992, the production of vodka (but no longer the sale) remains a state monopoly that continues to account for more than 10% of government revenue. In Japan, the Finance Ministry has a near monopoly in the production and sale of cigarettes through its company Japan Tobacco which in 1992 was generating $15 billion taxes per year, making it the largest corporate taxpayer in Japan.
Problem Type: E: Emanations of other problems
Date of last update 07.03.1999 – 00:00 CET