New research from Pakistan- and Southeastern Europe-based think tanks find that tobacco taxation increases can reduce tobacco consumption and at the same time increase government revenues in the regions.

In Pakistan, research results from the Pakistan Institute of Development Economics (PIDE) and the Social Policy and Development Centre (SPDC) recommend a simplified tax structure that has only two tiers of taxation, instead of the three tiers currently used in the country. Along with restoring tax levels to 2016 rates, this simplification would result in an estimated 3 million fewer smokers and 1.1 million fewer premature deaths and generate an estimated Rs 91.2 billion in new government revenues.

PIDE and SPDC were supported by grants to the University of Illinois at Chicago (UIC) to conduct economic research on the impact of tobacco taxes in Pakistan. UIC is a partner of the Bloomberg Initiative to Reduce Tobacco Use.

Similar results were also obtained by the Tobacco Tax Research Consortium, a group of seven think tanks led by the Institute of Economic Sciences, in Southeastern Europe, also supported by grants to UIC. The results from the research on consumer responses to changes in price of tobacco products and impacts on government revenues from tobacco tax increases show that an increase in excise tax reduced the quantity demanded for tobacco products and increased governmental revenues for all countries studied, which include: Albania, Bosnia and Herzegovina, Croatia, Kosovo, Macedonia, Montenegro, and Serbia.

UIC principal investigator Frank Chaloupka, professor of economics and director of the Health Policy Center, notes “this ground-breaking research highlights the need for evidence-based tobacco taxation policies throughout the Southeastern European region and in the country of Pakistan.”

The research was presented at recent conferences with policy makers and media participants. The full reports are here:

Pakistan

• Research Report: “Macroeconomic Impacts of Tobacco Use in Pakistan”, Social Policy and Development Centre (SPDC)
• Policy Brief: “Role of Tobacco in Pakistan’s Economy: An Untold Reality”, Social Policy and Development Centre (SPDC)
• Policy Brief: “Tobacco Control in Pakistan: The Impact of Tax Reduction Policy”, Social Policy and Development Centre (SPDC)
• Research Report: “Economics of Tobacco Taxation and Consumption in Pakistan”, Pakistan Institute of Development Economics (PIDE)
• Policy Brief: “Tobacco Use in Pakistan”, Pakistan Institute of Development Economics (PIDE)
• Policy Brief: “Higher Tobacco Taxes in Pakistan Could Increase Revenue and Improve Public Health”, Pakistan Institute of Development Economics (PIDE)

Southeastern Europe

• Research Report: "Accelerating Progress on Effective Tobacco Tax Policies in Low- and Middle-Income Countries, Regional study of Southeastern Europe," Institute for Economic Sciences, Serbia.
• Policy Brief: "Improving Tobacco Taxation Policies in Southeastern Europe," Institute for Economic Sciences, Serbia.

Albania

• Research Report: “Accelerating Progress on Effective Tobacco Tax Policies in Low- and Middle-Income Countries: National Study- Albania,” Development Solutions Associates (DSA)
• Policy Brief: “Improving Tobacco Tax Policies in the Republic of Albania,” Development Solutions Associates (DSA)

Bosnia and Herzegovina

• Research Report: “Accelerating Progress on Effective Tobacco Tax Policies in Low- and Middle-Income Countries: National Study- Bosnia and Herzegovina,” University of Banja Luka (UNIBL)
• Policy Brief: “Improving Tobacco Tax Policies in Bosnia and Herzegovina,” University of Banja Luka (UNIBL)

Croatia

• Research Report: “Accelerating Progress on Effective Tobacco Tax Policies in Low- and Middle-Income Countries: National Study- Croatia,” Faculty of Economics University of Split (FES)
• Policy Brief: “Excises on Tobacco Products- Effective Instrument for Reducing Prevalence of Smoking in Croatia,” Faculty of Economics University of Split (FES)

Kosovo

• Research Report: “Accelerating Progress on Effective Tobacco Tax Policies in Low- and Middle-Income Countries: National Study- Kosovo,” Centre for Political Courage (CPC)
• Policy Brief: “Accelerating Progress on Effective Tobacco Tax Policies in Kosovo,” Centre for Political Courage (CPC)

Macedonia

• Research Report: “Accelerating Progress on Effective Tobacco Tax Policies in Low- and Middle-Income Countries: National Study- Macedonia,” Association for Policy Research Analytica
• Policy Brief: “Improving Tobacco Tax Policy in the Republic of Macedonia,” Association for Policy Research Analytica

Montenegro

• Research Report: “Accelerating Progress on Effective Tobacco Tax Policies in Low- and Middle-Income Countries: National Study- Montenegro,” Institute for Socio-Economic Analysis (ISEA)
• Policy Brief: “Accelerating Progress on Effective Tobacco Tax Policies in Montenegro,” Institute for Socio-Economic Analysis (ISEA):

Serbia

• Research Report: “Accelerating Progress on Effective Tobacco Tax Policies in Low- and Middle-Income Countries: National Study- Serbia,” Institute of Economic Sciences (IES)
• Policy Brief: “Improving Tobacco Tax Policies in the Republic of Serbia,” Institute of Economic Sciences (IES)