Healthier and Wealthier- Why Taxing Tobacco is Not Only Important for Health, But Also the Economy

This policy brief was produced by Development Solutions Associates in Albania and examines the impact that higher tobacco taxes would have on smoking prevalence and government revenue in Albania. Specifically, a price increase of 25 percent resulting from the excise tax increase would lead to a decrease in cigarette consumption by 15.0 percent and an increase in government revenues by 17.9 percent, or 29.7 million euros. Based on this research, the brief concludes that raising tobacco taxes would result in a healthier and wealthier society.