Table 2 Impact of a Uniform Excise Tax on Pesticide Use and Government Revenue

Uniform Excise Tax
(Ad Valorem)

Price Elasticity of Demand for Pesticides

e = 0.1

e = 0.2

e = 0.3

e = 0.4

e = 0.5
t = 5%
reduction (%)
reduction (tons)
tax revenue (million baht)


-0.5
-450
398.0


-1
-900
396.0


-1.5
-1,350
394.0


-2
-1,800
392.0


-2.5
-2,250
390.0
t = 10%
reduction (%)
reduction (tons)
tax revenue (million baht)


-1
-900
792.0


-2
-1,800
784.0


-3
-2,700
776.0


-4
-3,600
768.0


-5
-4,500
760.0
t = 20%
reduction (%)
reduction (tons)
tax revenue (million baht)


-2
-1,800
1,568.0


-4
-3,600
1,536.0


-6
-5,400
1,504.0


-8
-7,200
1,472.0


-10
-9,000
1,440.0
t = 30%
reduction (%)
reduction (tons)
tax revenue (million baht)


-3
-2,700
2,328.0


-6
-5,400
2,256.0


-9
-8,100
2,184.0


-12
-10,800
2,112.0


-15
-13,500
2,040.0
t = 40%
reduction (%)
reduction (tons)
tax revenue (million baht)


-4
-3,600
3,072.0


-8
-7,200
2,944.0


-12
-10,800
2,816.0


-16
-14,400
2,688.0


-20
-18,000
2,560.0
t = 50%
reduction (%)
reduction (tons)
tax revenue (million baht)


-5
-4,500
3,800.0


-10
-9,000
3,600.0


-15
-13,500
3,400.0


-20
-18,000
3,200.0


-25
-22,500
3,000.0
t = 100%
reduction (%)
reduction (tons)
tax revenue (million baht)


-10
-9,000
7,200.0


-20
-18,000
6,400.0


-30
-27,000
5,600.0


-40
-36,000
4,800.0


-50
-45,000
4,000.0