Economics of Alcohol and Alcohol Taxation National Study- Montenegro

This Report was written by Institute for Socio-Economic Analysis (ISEA) in Montenegro. The report discusses the supply, demand, and consumption of alcohol in the country as well as related regulations and alcohol control policies. The prevalence of alcohol use is very high and similar for both men and women, as well as for young men and young women. Men, however, consume significantly more alcohol than women, 17 liters compared to 4.3 liters per year, respectively. The authors also assess the mixed excise tax system on various alcoholic beverages. Alcohol tax revenues significantly increased from 2020 to 2022, from 0.45% to 0.59% of GDP, respectively. Although Montenegro meets the minimum alcohol tax requirements for the EU, taxes are significantly lower compared to many of the Member States. Montenegro's taxes on beer and sparkling wine are lower than those applied in the Western Balkans as well. The report concludes with recommendations for policy makers to raise alcohol taxes and strengthen alcohol control policies to minimize alcohol-related harms.

A corresponding Policy Brief based on this report can be found here.