Assessment of Alcohol Taxation, Affordability and Price Elasticity Patterns in India

Assessment of Alcohol Taxation, Affordability and Price Elasticity Patterns in India

The broad objective of the project is to estimate overall tax burden and elasticity of alcohol products for the last 10 years in 7 selected states (Delhi, MP, Sikkim, Maharashtra, Bihar, Karnataka, Himachal Pradesh) of India. To attain this goal, the research study involves undertaking the specific tasks:

Reviewing of the state wise price mechanisms and structure of taxation across various types of alcohol products;
Estimating the trend in sales, consumption, and affordability of different alcohol products for the last 10 years;
Examining the price and tax elasticity of different alcohol products segregated by geography and socio-economic status;
Estimating the cross-price elasticity between alcohol products;
Analyze state wise increase in revenue in relation with increase in taxation for last 10 years; and,
Provide an estimated incremental tax requirement for relative reduction in consumption of alcohol by 10 % by 2025.

Researchers

  • 400Assessment of Alcohol Taxation, Affordability and Price Elasticity Patterns in India

    Sanjib Pohit is a Professor at NCAER. He is an experienced modeler in the area of trade and environment with 20 years of modelling experience. His domain of research experience includes science and technology policies, institutional economics, transport economics, input-output models, FDI, informal trade, automobile industry, and South Asian integration. Previously, he held position at...   Read More