Tax Evasion and Avoidance in Manufactured Cigarettes and Hand-Rolled Tobacco in North Macedonia: Results from a Nationwide Survey of Smokers

This Report was written by Analytica in North Macedonia. The report estimates the size and characteristics of the illicit tobacco market in North Macedonia. The study finds that tax evasion is higher in North Macedonia, compared to EU countries. The share of tax evasion 14.6% of the market, with the majority occurring in the hand-rolled tobacco market. The manufactured cigarette market is overwhelmingly licit, although this is to be expected given the low prices in the country. The report makes policy recommendations for the country to decrease its illicit tobacco market, while increasing tobacco taxes and other tobacco control measures. 

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