REAL EFFECT OF THE CZECH TAX POLICY FOR COMBATING THE TOBACCO EPIDEMIC

• Authors: David Petr , Litzman Marek , Rozmahel Petr
• Languages of publication: EN

Abstracts

EN

Similar to other developed countries, the Czech Republic implements socioeconomic policies aimed at minimizing smoking. The objective of this research is to provide evidence of the real impact of increasing cigarette taxes on cigarette consumption and its structure in the Czech Republic. The unique database consisting of manufacturers’ subscribed cigarette stamps and all posted brand prices were collected by the authors over the past two decades and was utilized in the analysis. The analysis shows that a continuous rise in cigarette market prices does not motivate consumers to prefer low price brands or to reduce cigarette consumption. The research provides evidence that smokers did not minimize smoking but even spent more money on cigarettes, preferring more expensive brands or staying loyal to a favoured one. This implies necessary changes in the market basket of the smokers’ households.

Keywords

EN

CIGARETTE CONSUMPTION; CONSUMER BEHAVIOUR; PRICE; TAX POLICY; CZECH REPUBLIC

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2022
• Volume: 70
• Issue: 7-8
• Pages: 589 – 602

Contributors

author

David Petr

• Mendel University in Brno, Faculty of Business and Economics, Zemědělská 1, 613 00 Brno, Czech Republic

• https://orcid.org/0000-0002-5055-0989

author

Litzman Marek

• https://orcid.org/0000-0001-9495-8188

author

Rozmahel Petr

• https://orcid.org/0000-0002-8862-4875

Identifiers

DOI

https://doi.org/10.31577/ekoncas.2022.07-8.02