The net impact of higher tobacco taxation on output, income, and employment is positive (2022)

The net impact of higher tobacco taxation on output, income, and employment is positive

This policy brief is based on a research study entitled Macroeconomic Impacts of Tobacco Taxation in Serbia. It examines the macroeconomic impacts of tobacco tax increases in Serbia. The results show that the net impact of increasing tobacco taxes is positive when output, income, and employment are considered as long as at least 80% of the additional revenue is reallocated. The policy brief concludes with recommendations for policy makers to significantly raise tobacco taxes and reallocate the revenue collected strategically.

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