Higher Tobacco Taxes for better Health and Revenue Outcomes in Kosovo* (2019)

Higher tobacco taxes for better health and revenue outcomes in Kosovo

Increasing tobacco excise and prices remains the single most effective policy in reducing tobacco demand. The specific excise rate for year 2019 of 47 EUR per conventional unit is half of the European Union directive minimum rate for tobacco excise duty of 90 EUR per unit.  Until now, legislative policies and initiatives in Kosovo have not resulted in changes in demand for cigarettes. Results show that increasing the price per pack of cigarettes has a direct impact on decreasing the demand for consumption of cigarettes and, as a result, increasing government revenues. Thus, the government of Kosovo could contribute to improved health and wellbeing of its citizens by increasing the specific excise tax on cigarettes for the year 2020 from EUR 47 to EUR 69.5 per 1000 sticks, and at the same time, generate significant and much needed additional budget revenues in a progressive manner.

Higher tobacco taxes for better health and revenue outcomes in Kosovo - download here. 

*References to Kosovo shall be understood to be in the context of Security Council Resolution 1244 (1999).