Assessing the impact of excise duties on a state’s revenues: the case of Greece

Christos Papageorgiou (), Panagiotis Farlekas () and Zacharias Dermatis
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Christos Papageorgiou: Department of Economics, University of Peloponnese, Tripolis Campus, Tripolis, Greece
Panagiotis Farlekas: Department of Economics, University of Peloponnese, Tripolis Campus, Tripolis, Greece

Public Sector Economics, 2021, vol. 45, issue 3, 387-412

Abstract: The purpose of this study is to assess the impact of excise duties on tobacco products on state’s revenues. Increasing excise duties on tobacco may act as a means to reduce the consumption of this product and thus to have a positive effect on citizens’ health and prosperity. Our research showed that an increase in consumer income will result in a certain increase in cigarette consumption and an analogous decrease in fine-cut tobacco consumption, while a similar increase in cigarette price results in a small decrease in cigarette consumption and a very large increase in fine-cut tobacco consumption. Additionally, stepping up an anti-smoking campaign results in a decrease in cigarette consumption. Specifically for Greece we found that during 2019 and 2020 there will be a decrease in the state’s revenues from excise duties on tobacco products of €150-€200 million each year.

Keywords: excise duties; specific excise tax; ad valorem excise tax; tobacco product; cigarette; fine-cut tobacco; Greece (search for similar items in EconPapers)
JEL-codes: H26 H50 H70 (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:ipf:psejou:v:45:y:2021:i:3:p:387-412

DOI: 10.3326/pse.45.3.4

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