National Studies

National Study - Albania

National Study on Economic of Tobacco and Tobacco Taxation – Albania

Albania has one of the highest tobacco consumption prevalences in the region (WHO, 2016). According to the WHO, the number of tobacco smokers is 683,440, dominated by male consumers. The smoking prevalence by gender is 51.2% for males and 7.6% for females.

Smokers account for 29% of the adult population, with a mean number of cigarettes smoked per day per smoker at about 18.7 (as of 2012). This fgure is lower as compared to 2005, when the mean number of cigarettes smoked per day per smoker was 20.7.

Meanwhile, the per capita consumption of cigarette sticks is estimated at 1,116/year. Tobacco consumption is a major problem for Albania with respect to underage tobacco consumption. According to the Tobacco Atlas, more than 1000 children of ages 10-14 use tobacco daily. The number of children under the age of 18 years that consume tobacco each day is even higher, around 15,000 children (WHO, 2014).

National Study - BOSNIA AND HERZEGOVINA

National Study on Economic of Tobacco and Tobacco Taxation – Bosnia-Herzegovina

The central question of this study was to determine the relationship between tobacco taxation and tobacco consumption in Bosnia and Herzegovina (BiH). This report is the frst of its kind, providing a comprehensive examination of the tobacco industry in (BiH) and an estimate of the impact of tobacco price on consumption.

Tobacco consumption continues to be prevalent among a large percentage of BiH citizens. According to ofcial statistics, more than 40% of the country’s adults, about 1,200,600 people, consume tobacco product on a daily basis. Thus, BiH is among the top 10 countries in the world for cigarette consumption, after Montenegro, Belarus, Lebanon, Macedonia, Russia, Slovenia, Belgium, Luxembourg, and China (MarketWatch, 2014).

Smoking prevalence in BiH is close to 40% with a signifcant difference between men (46.9%) and women (28.5%). The gender gap has diminished over time, as the smoking prevalence has been increasing among women. Tobacco use among females, as well as among youth, is possibly a response to an increasing level of tolerance towards smoking in BiH. Among youth, tobacco use prevalence for girls (9.7%) is signifcantly lower than boys (15.5%).

Disparities in smoking follow noticeably different patterns across social classes. There is a strong socioeconomic gradient in smoking, with more fnancially secure people in BiH less likely to smoke. Additional factors that likely contribute to the high level of smoking prevalence in BiH are an easy access to tobacco products, their affordability, and different forms of illicit trade of tobacco.

National Study - CROATIA

National Study on Economic of Tobacco and Tobacco Taxation – Croatia

The Republic of Croatia is geographically situated in the southeastern part of Europe and has a population of 4.1 million. However, since the mid-20th century, the population in Croatia has been decreasing. With the average population density of 73.8 per km, Croatia is one of the more sparsely populated European countries. According to the World Bank country classifcations by income level, Croatia is considered to be a high-income country.  

National Study - KOSOVO

National Study on Economic of Tobacco and Tobacco Taxation – Kosovo

Kosovo had a rather large tobacco industry from the 1960s until the early 1990s, when it had a major impact on its economy. The tobacco factory “Industria e Duhanit Gjilan– IDGJ” was one of the largest in the former Yugoslavia. Its economic impact was mainly felt in the Anamorava region, particularly in the city of Gjilan, where the tobacco industry had 800 employees, created 50,000 seasonal jobs and engaged over 10,000 farmers.

However, the tobacco industry in Kosovo was short-lived. From the late 1990s and beginning of 2000, Kosovo ceased manufacturing any of tobacco products. This meant that all tobacco products in Kosovo have since been imported, and local farming is minimal or irrelevant for the national tobacco market.

Kosovo is considered to be a country with a high smoking prevalence, even though the Kosovo Agency of Statistics (KAS) estimates that it is only at the level of 16% of population above 16 years old. Alternative estimates from other studies show that smoking prevalence is as high as 28% (see page 15). A more realistic view may come from Kosovo Customs data on the volume (up 4.5 tons in kg of tobacco products per year) and value (up to €60 million per year) of the imported tobacco products.

National Study - MACEDONIA

National Study on Economic of Tobacco and Tobacco Taxation – Macedonia

The Republic of Macedonia has a long history and tradition of cultivating and exporting raw tobacco, especially the Oriental type of tobacco. As such, Macedonia is one of the major raw tobacco leaf and fnished cigarettes producing countries in the region.

In this document, we analyze the specifc characteristics of tobacco cultivation in Macedonia, supply and demand of tobacco and tobacco products, tobacco industry and tobacco products market and tobacco control policies, including taxation. Most of Macedonia’s cigarette consumption comes from domestic production, while cigars, cigarillos and smoking tobacco are imported. In addition to domestically manufactured cigarette brands, some are imported.

Based on the size of the market and data provided by the Ministry of Finance, Central Registry of Macedonia, State Statistical Ofce of Macedonia and other sources, we discuss the supply and demand on the tobacco market, as well as the effects of national policies, including taxation, excise tax and value added tax (VAT) on tobacco product prices and consumption levels. The domestic production and import-export data from the MAK STAT database of the State Statistical Ofce of Macedonia are also included.

National Study - MONTENEGRO

National Study on Economic of Tobacco and Tobacco Taxation – Montenegro

Montenegro is a small, Central Mediterranean country in Southeast Europe, on the Balkan Peninsula, with a coastline at the Adriatic Sea. It covers an area of 13,812 km2, with 295 km long coast and 72 km of beaches. The population counts 620,029 people (Survey of 2011). The largest city and capital of Montenegro is Podgorica, home to approximately 185,937 people or 1/3 of country’s entire population.

The tobacco market and industry consist of: importers and exporters of tobacco, wholesalers, retailers, tobacco producers and tobacco manufacturers. Production of tobacco products (raw and fnal goods) has a marginal share in the structure of agricultural production in Montenegro. Until 2000, the production of tobacco had a high share on the market. But since then, the level of tobacco growing as well as cigarette production has reduced.

The reduction has occurred mainly due to the dominance of new cigarette brands that are based on a mixture of different sorts of tobacco and the 2016 liquidation of Montenegro’s main domestic producer Duvanski kombinat Podgorica (DKP) after 113 years of existence. Additionally, because of the market size, it was unproftable for foreign investors to enter the market. Consequently, the number of households that grow raw tobacco, as well as the number of employees in the tobacco manufacturing sector, has dropped signifcantly.

National Study - SERBIA

National Study on Economic of Tobacco and Tobacco Taxation – Serbia

Serbia is located in the Southeastern Europe region, classifed as an upper-middle-income country according to the World Bank ranking.

The country covers a total of 88,361 km2 with a total population of 7,020,858 inhabitants and has one of the oldest populations in the world (average age of 42.9 years, mortality rate continually exceeding the birth rate). The tobacco market and industry in Serbia are highly regulated.

There exist seven major groups in the sector: tobacco producers, tobacco processors, tobacco manufacturers, wholesalers, retailers, importers and exporters of tobacco, processed tobacco, and/or tobacco products.