Price and Income Elasticity of Cigarette Demand in Bulgaria and the Impact of Changing Excises on Government Tax Revenues (2024)
Bulgaria has the highest mortality rate attributable to tobacco consumption and exposure globally, and it is the European Union (EU) member state with the highest tobacco prevalence. It is also the EU member state with the lowest excise rates on cigarettes. These facts stand in close connection, underlining the urgent need for effective national tobacco control measures. This study, authored by the research team from the Smoke-free Life Bulgaria Coalition, has two main objectives. First, to provide independent and reliable estimations of the national price and income elasticity of cigarette demand. Second, to develop scenarios about the expected cigarette demand and budget revenues when imposing higher excise rates. The quantitative research utilizes the Household Budget Survey data for 2015–2019 and 2021.
Price and Income Elasticity of Cigarette Demand in Bulgaria and the Impact of Changing Excises on Government Tax Revenues (2024) - download here
