Size and Characteristics of Tobacco Tax Evasion in Bosnia and Herzegovina

This Report was written by University of Banja Luka (UBL) in Bosnia and Herzegovina. The report examines the nation's tobacco tax avoidance and evasion in order to estimate the size of the nation's illicit tobacco market. Illicit tobacco consumption accounts for 32.3% of all consumption, largely driven by illicit hand-rolled tobacco use (95.4% compared to 18.1% of manufactured cigarette consumption). The researchers find that illicit consumption is more common among certain demographics of smokers. Proximity to Montenegro and Serbia, where cigarettes are more affordable also increases illicit use. The report utilizes the findings to make policy recommendations to decrease the size of the illicit market, while improving the effectiveness of tobacco taxes. 

A Policy Brief based on the report can be found here.