Table 3. Results of the Deterministic Sensitivity Analysis With the Predicted Annual Increase in Tax Revenue, Social Cost Savings and the Net Monetary Benefit at Suggested 30% And 90% Cut Off Values for Tobacco Tax Increase in Response to the Variability of Price Elasticity of Demand and Substitution Factor .
Input | Predicted Gain in Tax Revenue (LKR Mn) |
Predicted Social Savings
(LKR Mn) |
Predicted Net Monetary Benefit
(LKR Mn) |
|||
30% Tax Increase | 90% Tax Increase | 30% Tax Increase | 90% Tax Increase | 30% Tax Increase | 90% Tax Increase | |
Base case analysis Price elasticity -0.74, substitution factor 1% |
3544 | -24 272 | 28 069 | 86 854 | 31 613 | 62 582 |
Price elasticity of demand of cigarettes of -0.53 | 12 850 | 16 532 | 19 728 | 61 831 | 32 578 | 78 362 |
Price elasticity of demand of cigarettes of -0.65 | 7532 | -6785 | 24 494 | 76 130 | 32 026 | 69 345 |
Substitution factor of 2% | 7975 | -4842 | 26 745 | 85 530 | 34 720 | 80 688 |