Expediting Tobacco Taxation in Slovakia: More gain, Fewer Pains

Abstract

The paper investigates the fiscal and public health implications of adopting an expedited excise tax calendar for conventional tobacco cigarettes in Slovakia. Through a comparative simulation, the study evaluates the outcomes of the current bi-annual tax system versus a proposed annual increase schedule from 2024 to 2028. The findings indicate that the proposed tax calendar would substantially increase government revenues while significantly lowering smoking prevalence, particularly among vulnerable populations such as youth and low-income groups. By raising tobacco prices more frequently, the proposed system is projected to achieve greater public health benefits, including the prevention of numerous premature deaths and lower smoking initiation. These findings underscore the benefits of excise taxation as both a fiscal and public health tool, offering a framework that could be replicated by other Central and Eastern European countries struggling with tobacco affordability progress.