Tobacco Tax Pass-Through in Montenegro (2023)
The tobacco industry employs a variety of pricing strategies, using different tactics to balance their business and profits. These tactics differ in relation to market segments of tobacco products and balance between volume and price, which enables the industry to keep generating high profit margins in Montenegro while maintaining the wide price gap between premium and cheaper tobacco products. This paper contributes to the current empirical evidence related to the estimation of pass-through of taxes, which can serve as a basis for policy makers to design effective tobacco taxation policy.
Tobacco Tax Pass-Through in Montenegro (2023) - download here.