Today MPP group in State Great Khural has held meeting and re-discussed the plans to lower budget deficit, submitted by the Government.
The Government proposed maximizing the excise tax on alcohol, tobacco and wine by 20 percent. According to the international standards, excise taxes are imposed on environmentally harmful products with the aim to discourage the consumption and to create an additional source of budget revenue.
Number of tobacco and alcohol related diseases as well as death from alcohol and tobacco use have regularly increased in recent years. Study conducted by the National Public Health Center shows that one of every three death in Mongolia were from heart disease and one of every five death in Mongolia were from cancer.
Therefore, the most efficient and economically beneficial measures to reduce alcohol and tobacco use is to increase excise tax rates. According to the study conducted by the Organisation for Economic Co-operation and Development (OECD), increase in excise tax on alcohol and tobacco is found as an effective approach to minimizing the alcohol and tobacco consumption, especially that of youngsters. If prices for alcohol and tobacco products are increased by 10 percent, consumption in developed countries would be decreased by 4 percent while consumption in developing countries would be decreased by 8 percent.
Photo source: www.mpa.mn
Today MPP group in State Great Khural has held meeting and re-discussed the plans to lower budget deficit, submitted by the Government.
The Government proposed maximizing the excise tax on alcohol, tobacco and wine by 20 percent. According to the international standards, excise taxes are imposed on environmentally harmful products with the aim to discourage the consumption and to create an additional source of budget revenue.
Number of tobacco and alcohol related diseases as well as death from alcohol and tobacco use have regularly increased in recent years. Study conducted by the National Public Health Center shows that one of every three death in Mongolia were from heart disease and one of every five death in Mongolia were from cancer.
Therefore, the most efficient and economically beneficial measures to reduce alcohol and tobacco use is to increase excise tax rates. According to the study conducted by the Organisation for Economic Co-operation and Development (OECD), increase in excise tax on alcohol and tobacco is found as an effective approach to minimizing the alcohol and tobacco consumption, especially that of youngsters. If prices for alcohol and tobacco products are increased by 10 percent, consumption in developed countries would be decreased by 4 percent while consumption in developing countries would be decreased by 8 percent.
Photo source: www.mpa.mn