Tobacco tax policy in Bosnia and Herzegovina currently assumes a gradual annual increase in the specific excise tax on cigarettes (0.15 BAM per year per pack). However, since 2019 policy makers in Bosnia and Herzegovina have frozen the increase in specific excise taxes. The Indirect Taxation Authority (ITA) increased the minimum excise in 2023 to 3.35 Bosnia-Herzegovina convertible marks (BAM) per pack, which is a change of 0.02 BAM compared to 2022. This research examines the effects of the increase in cigarette prices on government revenues from excise and indirect taxes, as well as the health impacts of tobacco tax increases.
Bosnia and Herzegovina tobacco excise tax modeling (2023) -download here.