Center for Tobacco Control Research and Education
Cigarette Demand, Taxation, and the Poor: A Case Study of Bulgaria
- Author(s): Sayginsoy, Ozgen
- Yurekli, Ayda A.
- de Beyer, Joy
- et al.
This paper usesthe Living Standards Measurement Study (LSMS) Household Survey, conducted in 1995, to analyze demand for cigarettes in Bulgaria and the effects on the poor of a hypothetical revenue-maximizing specific excise tax increase levied on cigarettes. One important finding is that the tax increase has a beneficial effect on the poor, in the sense that the tax burden on the low and lower-middle group is reduced.