Tobacco Tax Pass-Through in Montenegro (2023)

Tobacco Tax Pass-Through in Montenegro (2023)

The tobacco industry employs a variety of pricing strategies and tactics to balance their business and profits. These tactics vary in relation to the different market segments of tobacco products, balancing between volume and price, which enables them to keep generating high profit margins. To understand the overall pricing policies, the main objective of this research is to estimate the extent that tobacco tax changes are passed through to smokers in Montenegro. To achieve this goal, ISEA’s study uses price data from the Tobacco Agency on manufactured cigarette brands traded in Montenegro between 2010 and 2022.

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