Abstract for: Understanding Policy Resistance in Tobacco Taxation Policy

Many governments increase taxes on unhealthy products to reduce their use. Many countries raise taxes on items like tobacco to make them more expensive and discourage purchase. For example, India's GST Council is considering higher taxes on tobacco. However, such policies do not always work due to policy resistance. People and businesses adjust by switching to cheaper alternatives, buying from illegal markets, or continuing use, known as the rebound effect. This exploratory study uses a system dynamics approach to understand why tobacco tax policies face resistance. System dynamics helps us see how different factors, such as consumer behavior and government actions, interact with each other over time. By studying these connections, we can understand why taxation alone may not be enough to reduce tobacco use. Our study finds that simply increasing taxes may not always lead to lower tobacco consumption. The system has feedback effects that make it hard for tax policies to work as planned. To improve the impact of taxation, governments may need additional measures, such as stricter law enforcement, better awareness campaigns, and policies that help people quit tobacco. This paper provides useful insights on the potential side effects of taxation policies and why there is a need to design better tax strategies that work in the long run. While our model uses the taxation policy of India as an example, the findings can help other countries facing similar challenges in controlling unhealthy products through taxation. Used for structuring sentences.