Excise duty as a means of regulating consumer behaviour in kenya; A case of the tobacco industry
Excise tax is a levy applied selectively on particular goods and services. It has been used world over for two major reasons; as a means of raising government revenue and to regulate consumer behaviour. The major argument when addressing consumer behaviour is that an increase in the price of any commodity is bound to influence the will and capacity of consumers to spend on the commodity. This thesis contends that variation in price will not necessarily affect all consumers. When considering the case of tobacco consumption, the impact of an increase in excise tax will be felt most by the poor and underage consumers. Excise tax would therefore be a useful tool in regulating tobacco consumption in developing countries and also discouraging teenagers from starting the habit. The consumption of tobacco is a major issue worldwide because tobacco is a leading cause of death and also imposes a high burden on society by virtue of the high medical bills involved in treating patients. The thesis therefore proposes that excise tax should be increased regularly with the aim of discouraging new smokers from taking up the habit and also reducing the number of smokers amongst society's poor. Key words; excise tax, consumer behaviour, revenue collection and teenage consumption.
SponsorhipUniversity of Nairobi
University of NairobiSchool of law