This report analyzes tobacco tax evasion and avoidance in six SEE countries—Albania, Bosnia and Herzegovina, Kosovo, Montenegro, North Macedonia, and Serbia—by utilizing a unique data set from the Survey on Tobacco Consumption in Southeastern European countries (STC-SEE), conducted in 2019.
This research aims to objectively and independently estimate the size of the illicit tobacco market and capture the main determinants of tax avoidance and evasion activities in the SEE region. To the best of the researchers’ knowledge, this is the first independent study to provide such evidence. STC-SEE respondents were asked to provide a pack of their last-purchased tobacco product and respond to questions related to the price, tax stamps, health warnings, and place of purchase in order to determine whether the pack is legal or the purchase represents an instance of tax evasion or avoidance.
Tobacco tax evasion in SEE Countries (2021) - download here.