Tax Planning on New Tobacco Risk-Reduced Products in Europe: Assessment and Implications for Public Policies

Fernando Pinto Hernández and María Jesús Delgado Rodríguez ()
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Fernando Pinto Hernández: Department of Business Economics, Applied Economics II and Economics Fundaments Analysis, Rey Juan Carlos University, 28032 Madrid, Spain
María Jesús Delgado Rodríguez: Department of Business Economics, Applied Economics II and Economics Fundaments Analysis, Rey Juan Carlos University, 28032 Madrid, Spain

Land, 2023, vol. 12, issue 10, 1-16

Abstract: Taxes on the consumption of certain products have played a key role in public revenue analysis in European countries. This work assesses the differences in tax planning for new non-combustion products across some European territories. Through theoretical analysis, the paper has three distinct aspects. Firstly, we show the taxpayer profile in different countries. Secondly, the study analyzes the risks for the health system and the individual. Thirdly, the design of the national tobacco tax is based on previous experience and planning in Europe. This paper concludes with a case study for different countries: (1) Spain “vapers” and “smokers”, where the analysis is based on micro-data from the European Health Interview Survey 2020. (2) Sweden, with the analysis of snus, shows it as a practice on how to reach economic savings while decreasing economic costs thanks to the nudging of consumers towards better products. The results show taxation and, especially, land taxation should consider differences in planning in the case of new products, such as non-combustion products, given the user per capita income and the potential lower health risks involved.

Keywords: taxes; EU; risk-reduced products; taxation; external effects (search for similar items in EconPapers)
JEL-codes: Q15 Q2 Q24 Q28 Q5 R14 R52 (search for similar items in EconPapers)
Date: 2023
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Persistent link: https://EconPapers.repec.org/RePEc:gam:jlands:v:12:y:2023:i:10:p:1827-:d:1247107

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