Tobacco taxation

For broader coverage of this topic, see Tobacco control.

Tobacco taxation is the excise tax on cigarettes and other tobacco products.

Tobacco taxation is the most effective tobacco control measure. It is used by many governments generate revenue and to reduce tobacco consumption. On average, a 10 % price increase reduces cigarette consumption by 4 % to 5 %.

Its revenue can contribute to the general government budget and/or be used to cover health costs of tobacco smoking. The World Health Organization recommends a minimum 75 % tax share of the retail price of tobacco, as a way of deterring cancer, cardiovascular diseases and other negative health outcomes.

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