Research

Cigarette Tax Scorecard (2nd Edition): Tax Structure

This Policy Note was written based on the Cigarette Tax Scorecard. The policy note elaborates on one of the four scoring components used in the Scorecard: tax structure. This component of the score quantifies the effectiveness of the excise tax structure used for cigarettes. The highest score of 5 points is awarded to countries that either have a uniform specific tax with automatic adjustment or a mixed system with greater share of specific tax, with an automatic adjustment for the specific component, the retail price as the base for the ad valorem component, and a minimum tax to lift the prices of economy brands. In 2020, the average score in this component was 2.87 points out of 5. There is significant room for improvement globally, although the European region, region of the Americas, and high-income countries perform best. The policy note further discusses the strengths and weaknesses of the measure, as well as recommendations for policy makers. 

View the entire Cigarette Tax Scorecard here.

November 2021

Location(s): Global

Content Type: Policy Note

Topic(s): Tax and price, Tax levels and structure