A mixed tax and worth framework (CTPF) computational software sometimes estimates the impression of taxes and worth changes on items like tobacco and alcohol. It permits customers to enter numerous parameters resembling present worth, proposed tax will increase, and worth elasticity of demand to venture potential outcomes like adjustments in consumption, income technology, and public well being impacts. For instance, such a software may mannequin the results of a ten% excise tax enhance on cigarette gross sales and associated well being prices.
These instruments play a vital position in informing coverage choices associated to public well being and income administration. By offering evidence-based projections, they’ll help governments in understanding the potential penalties of tax and worth interventions, permitting for more practical methods to curb consumption of dangerous merchandise or generate funding for public well being initiatives. The event of those instruments has been pushed by the necessity for strong financial modeling in public well being coverage, significantly regarding merchandise with identified adverse externalities.
