Accelerating Progress on Effective Tobacco Tax Policies in Low- and Middle-Income Countries: Bulgaria

This Report was written by Smoke-Free Life Coalition in Bulgaria. The report provides an overview of the current state of tobacco use and tobacco control in the country, as well as future policy alternatives. Currently, tobacco growing is heavily subsidized, yet the value of the tobacco produced is 3x less than these subsidies and up to 93% of the cigarettes consumed are imported. In terms of consumption, the price elasticity of demand for cigarettes is estimated to be between -0.737 and -0.826. Excise tax rates have remained largely constant since 2011, leading to cigarettes becoming more affordable and consumption increasing by 43%. Tobacco prevalence is especially high among women and girls relative to the rest of the region. The researchers estimate that a 20% increase in excise taxes would raise prices by almost 14% and reduce consumption by between 77 and 87 million packs annually. At the same time, tax revenue would increase by between 84 and 132 million Bulgarian leva. The report concludes with policy recommendations to reduce tobacco use and raise tax revenues.