Why taxing tobacco is important not only for health but also for the economy
Albania has one of the highest smoking prevalence rates in the Western Balkans and Europe. In Albania, every second male smokes, while female rates of smoking prevalence are higher than most developed countries (according to Human Development Index (HDI) ranking). In addition, tobacco consumption is a major problem among youth.
Tax policies on tobacco products are considered most effective for reducing tobacco consumption, besides contributing to government revenue. Efficient fiscal policies aiming to reduce smoking prevalence need to be based on solid evidence. For this purpose, a study has been carried out by Development Solutions Associates (DSA), which confirms that an increase in excise taxes on tobacco products could reduce tobacco consumption and increase government revenue considerably.
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