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Home Research areas Consumer behaviour and indirect taxation Modelling effects of indirect taxation and advertising

Modelling effects of indirect taxation and advertising

Indirect taxes are taxes levied on the goods and services people buy. These include VAT, fuel duty, and tobacco and alcohol duties. Our research looks at the extent to which such taxes are passed on to prices, the demand response such taxes generate and their impact on welfare. Our research also explores the role that advertising plays in influencing choices and the implications of policies that seek to restrict advertising.

Selected highlights

Book chapter
Excise duties make a significant contribution to UK government revenues. In 2014–15, the duties levied on fuel, tobacco and alcohol raised £47 billion, comprising 7.2% of total receipts. However, the future of these taxes is uncertain. Revenues from existing duties are set to decline in coming ...
Journal article
There are growing calls to restrict advertising of junk foods. Whether such a move will improve diet quality will depend on how advertising shifts consumer demands and how firms respond. We study an important and typical junk food market – the potato chips market.


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Peter Levell
Associate Director
Martin O'Connell
International Research Fellow
Kate Smith
Associate Director