Identifying the burden of the total taxes on the price of the beverages covered is an important component of assessing the share of indirect taxes in the price of beverages.
Definition:
Total tax is the sum of all consumption taxes applied on beverages, it includes excise tax, VAT/sales tax, import duties and any other applicable taxes.
Disaggregation:
Beer
Spirits
Sugar-sweetened carbonated beverage
Method of estimation:
Sum of excise tax share, VAT/sales tax share, import duty and other tax shares in the price of the beverages covered.
Percentages depend in some cases (especially when one of the consumption taxes is specific) on the level of price reported for the beverage. If the price is not correctly reported, the proportion estimated may be biased.
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