Cigarette Prices Research Articles

PROBLEMATIC ISSUES OF THE EXCISE POLICY OF GEORGIA

The article considers problematic issues of excise policy related to the taxation of tobacco products. Changes in the excise duty rates on tobacco in Georgia over the last ten years are also discussed. Tobacco products (cigarettes) are commodities that are characterized by particularly inelastic demand and price changes reduce the demand for it to a lesser extent. If different taxes, iincluding the excise duty rates on cigarettes have risen sharply above reasonable levels, making them inaccessible to a statistically significant number of consumers, a strong motivations appears instantly, and illegal supply channels are quite quickly setting up. Such a scheme of development of the situation has taken place many times around the world, even in much more economically developed countries, where the share of tobacco spending in citizens' budgets is much lower. Comparing the codified versions of different periods of the Tax Code and other normative acts, it it has been established that from 2011 to 2021, excise rates on filtered cigarettes increased by an average 5.6 times, and on unfiltered cigarettes - 19 times. The share of taxes (excise and VAT) already exceeds 75% of the average retail selling prices for cigarettes. The reason for the multiple increase in the tax burden on tobacco products is usually the international obligations of the country, both in terms of tobacco taxation to the World Health Organization and in the framework of the Association Agreement with the European Union. Fiscal purposes were also important in implementing the excise policy. The state needed to find additional sources of revenue for financing the increased public expenditure, and under Georgian law, excise duty is the only common State tax that can be increased without a referendum. A sharp rise in excise rates has significantly increased the tax burden on tobacco consumption. This has led to a series of unforeseen consequences. According to official statistics, both local production and imports of tobacco products have significantly decreased. As a result, the demand for excise stamps has sharply decreased. Therefore, the fiscal effect of the multiple increase in excise duty rates on tobacco has been largely offset. However, the reduction in the intensity of tobacco use is not confirmed by any reliable research or reasonable estimates. This indicates that we are dealing with a significant increase in excise duty-free cigarette smuggling and illicit trafficking. This fact is confirmed by statistics - there is a sharp increase in both administrative and criminal offenses in this field. This situation and the discussion of the relevant threats is the subject of this article. We think that excise policy, especially with regard to tobacco products, is one of the most important issues in recent years, which needs to be addressed.

The pass-through of excise taxes to market prices of heated tobacco products (HTPs) and cigarettes: a cross-country analysis.

The market for heated tobacco products (HTPs) has grown markedly in recent years, and many governments have started to tax HTPs to regulate their use. To evaluate the impacts of HTP taxes on tobacco use behaviors and health consequences, we first need to assess if they effectively raise HTP prices in a tax system that also taxes cigarettes. This study jointly evaluates the pass-through of taxes to prices of HTPs and cigarettes. We use a unique database on statutory HTP and cigarette taxes and retail prices of Marlboro-branded heated tobacco units and cigarettes from 2014 to 2021, developed by the Campaign for Tobacco Free Kids, in all countries where HTPs are sold. To estimate the pass-through of taxes to prices, we employ a seemingly unrelated regressions model. We also use an event study to test the impact of introducing HTPs to cigarette markets, as well as amending tax codes to include HTPs, on prices and price gaps. Currently, the debate over whether HTPs should be taxed in comparison with cigarettes considers their potential harm reduction impact, and most countries tax HTPs at much lower rates than cigarettes in order to keep HTP prices lower than cigarette prices. However, the direct pass-through rate of HTP taxes to prices is several times smaller than that of cigarettes, resulting in very similar unit prices of HTPs and cigarettes. Further, while cigarette taxes are over-shifted to cigarette prices, HTP taxes are under-shifted to HTP prices, suggesting that tax gaps between the two products does not translate to price gaps. The results overall suggest that the lower taxes on HTPs do not lead to lower prices as compared to cigarettes and are unlikely to incentivize cigarette smokers to transition to HTPS for lower costs. Under this scenario, taxing both products equivalently could be an option to raise additional tax revenue.

E-cigarette use and conventional cigarette smoking among European students: findings from the 2019 ESPAD survey.

Representative data on e-cigarette use among European adolescents are scant. This study reports current vaping and tobacco smoking individual and country-specific correlates among European students. Cross-sectional survey: 2019 European School Survey Project on Alcohol and Other Drugs (ESPAD) collecting data on risk behaviours on a representative sample of 16-year-old students. A total of 35 European countries, 25-30 with Tobacco Control Scale (TCS) and TCS components PARTICIPANTS: A total of 99 648 students (49.1% males) turning 16 years in the survey year. Data on current cigarette and e-cigarette use were gathered through a self-administered questionnaire which also collected socio-demographics and individual and family characteristics. ESPAD data were integrated with country-level data on TCS and selected TCS parameters to assess their association with the prevalence of current cigarette and e-cigarette use. Of the 99 648 participating students, 12.4% were current e-cigarette users, from 5.5% in Serbia to 41.4% in Monaco; 19.3% current smokers, from 5.1% in Iceland to 32.4% in Italy. Compared with non-users, current e-cigarette users less frequently came from an average well-off family [odds ratio (OR) =0.85, 95% confidence interval (CI) =0.80-0.90] and lived in countries with higher cigarette prices (OR =0.71, 95% CI =0.50-0.99), restrictive measures on tobacco advertising and promotion (OR =0.79, 95% CI =0.63-0.99) and intermediate implementation of tobacco control measures (OR =0.57, 95% CI =0.38-0.85). Current vapers were more frequently life ever smokers (OR =7.31, 95% CI =6.47-8.25), were early smokers (OR =4.35, 95% CI =3.66-5.17), males (OR =1.61, 95% CI =1.55-1.67), from non-traditional families (OR =1.43, 95% CI =1.34-1.53), with relatively low parental education (OR =1.15, 95% CI =1.10-1.20). Compared with non-smokers, current smokers had similar family characteristics to vapers, and were less likely to live in countries with higher cigarette prices (OR =0.70, 95% CI =0.49-0.99) and higher spending on public anti-tobacco media campaigns (OR =0.23, 95% CI =0.10-0.50). E-cigarette use among European adolescents is associated with weaker tobacco control measures, particularly on tobacco price, advertising and promotion. Besides preventing tobacco smoking, the adoption of governmental tobacco control policies in European countries also seems to contribute to the prevention of vaping among adolescents.

CUSTOMER SATISFACTION OF CIGARETTE PRODUCTS RELATED TO PRODUCT QUALITY AND PRICE

This research aims to identify the impact of product quality and price on consumer happiness for Camel Mild Option Purple Cigarettes by PT Japan Tobbaco International in Bandung. This research is a quantitative research with 56 respondents. To ensure sample information using a questionnaire on a google form by scattering it online. Information obtained using SPSS 26 using the multiple linear regression analysis method. Information analysis using multiple linear regression, correlation experiments, verification experiments, partial experimental analysis with t experiments and f experiments (simultaneously) proves that product quality affects purchase decisions, price affects purchase decisions, on the other hand product quality and price in a similar way affect to purchase decisions.

Cigarette taxation and price differentials in 195 countries

Cigarette taxation and price differentials in 195 countries

Using an experimental tobacco marketplace to pilot test the substitutability of JUUL e-cigarettes and other alternative nicotine and tobacco products for conventional cigarettes among vulnerable populations

The Experimental Tobacco Marketplace (ETM) is an online research marketplace where increasing the cost of cigarettes is used to investigate the substitutability of other fixed-price tobacco products such as electronic nicotine delivery systems (ENDS). The ETM is useful for modeling effects of potential policy changes on use of various concurrently available products. To our knowledge, the ETM has not been used to investigate substitutability of newer generation e-cigarettes or populations at increased risk for smoking, heavy smoking, nicotine dependence, and smoking-attributable adverse effects. In the current pilot study, participants were 30 adult daily smokers with socioeconomic disadvantage or comorbid psychiatric conditions (substance-use disorder or mental illness). In each session, cigarette prices increased ($0.12, $0.25, $0.50, $1.00. and $2.00 per cigarette) while prices for alternative products remained fixed. Across three ETM sessions, either all products, all products except little cigars and cigarillos (LCCs), or all products except ENDS (JUUL e-cigarettes) were available. Linear regression was performed on individual participant data using log-transformed cigarette price to determine demand and substitution. Cigarette demand decreased as price increased across sessions (significantly non-zero slopes, ps ≤ 0.0001). When all products were available, ENDS substitution increased as cigarette price increased (significantly non-zero slope, p = .016). When LCCs were unavailable, ENDS again were a significant substitute (p = .008). When ENDS were unavailable, LCCs did not substitute (ps ≥ 0.48). In all sessions, participants rarely purchased other products (e.g., snus). Overall, ENDS were the most robust substitute for cigarettes, further underscoring the potential importance of ENDS availability on the impact of tobacco regulatory policies.

The Impact of Cigarette Prices, Store Displays, Covid-19, and Excise Tariffs on Cigarette Consumption

The Impact of Cigarette Prices, Store Displays, Covid-19, and Excise Tariffs on Cigarette Consumption

Analysis of exposure to tobacco advertisement and promotion among Chinese adults aged 15 years and above, 2010 and 2018

Objective: To investigate the exposure to tobacco advertisements and promotions among Chinese adults aged 15 and above, identify the publicity channels and forms of tobacco advertising and promotion in 2010 and 2018, and implicate further tobacco control measures in China. Methods: A multistage, stratified, randomized cluster sampling design was used in 2010 and 2018 China Adult Tobacco Survey, with national representativeness. 13 354 and 19 376 permanent residents were selected in the 2010 and 2018 surveys. SAS 9.4 software was applied for data analysis, and all the data were weighted based on a complex sampling design. Rao Scott χ2 test was used for group comparison of a single factor. Results: In 2010 and 2018, 19.61% and 18.14% of the survey respondents did see tobacco advertising and promotion. From 2010 to 2018, there was no significant change in the situation of tobacco advertisements and promotions. Among those who had gone to a cigarette shop, the proportion of seeing tobacco advertisements increased from 29.28% in 2010 to 43.28% in 2018. Among those who had seen tobacco advertisements on TV, the rate fell from 50.93% in 2010 to 28.58% in 2018. Among those who had gone to movie theaters, the proportion of seeing tobacco advertisements increased from 2.17% in 2010 to 9.89% in 2018. Among those who had used the Internet, the proportion of seeing tobacco advertisements online rose from 19.20% in 2010 to 42.30% in 2018. In terms of tobacco promotion, the percentages of people who had seen tobacco promotions, cigarette price discounts, cigarette discount coupons, gifts, and other preferential activities in various places in the past 30 days were 4.99% vs. 9.30%, 0.78% vs. 4.09%, 0.04% vs. 0.33% and 0.98% vs. 3.33% in 2010 and 2018, respectively (P<0.001). Conclusions: Tobacco advertising and promotion are still prevalent in China, with no significant change in 2010 and 2018. Tobacco advertising and promotion have been with the constant changes and development of media platforms. It is necessary to improve the implementation of relevant policies, comprehensively ban tobacco advertisements and promotions, and strengthen the supervision of ads and promotions.

Trends in Annual Sales and Pack Price of Cigarettes in the US, 2015-2021

Trends in Annual Sales and Pack Price of Cigarettes in the US, 2015-2021

Adolescent Smoking: A Cross-sectional Study on the Knowledge, Attitude and Practices of Filipino Adolescents in a Tertiary Hospital

Objective. The study aims to determine the knowledge, attitudes and practices of Filipino adolescents aged 13-18 years old regarding cigarette smoking.&#x0D; Methods. This is a descriptive cross-sectional study that utilized a questionnaire adapted from the Global Youth Tobacco Survey.&#x0D; Results. The prevalence among study participants who tried smoking (11.8%) and current users (3.6%) is lower than the global statistics and the country’s reported prevalence, but started at a younger age (5.3% started smoking at 12-13 years old). Electronic cigarette (12.9%) is more commonly tried and used than conventional cigarettes (11.8%). Ninety five percent (95%) of the participants view smoking as harmful. Some (13.5%) do not know the effects of smoking, 1.1% consider it harmless, and 8.2% have no objections to starting to smoke someday. Most adolescents (49.1%) do not know the price of cigarettes, but 22% prefer to pay less than the actual price.&#x0D; Conclusion. Adolescents are knowledgeable and have a negative attitude towards smoking. Regardless if they are non-smokers, tried smoking, or are currently smoking, they still need to be educated more regarding the effects and consequences of smoking.

Benefits of the cigarette tax in Mexico, by sex and income quintileBenefícios do imposto sobre cigarros no México: análise por sexo e quintil de renda

RESUMENObjetivo.Estimar los beneficios económicos y en salud, por sexo y por quintil de ingreso, del incremento de los precios de los cigarros mediante impuestos en México.Métodos.Con un modelo de costo-efectividad extendido (ECEA, por su sigla en inglés) se estimaron los beneficios distributivos en mujeres y hombres con un escenario de incremento del precio de los cigarros de 44% (de 56,4 pesos mexicanos [MX$] a MX$81,2 por cajetilla), como resultado de triplicar el impuesto específico actual (de MX$0,49/cigarro a MX$1,49/cigarro). El modelo se calibró con fuentes oficiales de información nacionalResultados.Con el incremento del impuesto de un peso por cigarro, cerca de 1,5 millones de fumadores abandonarían el consumo (351 300 mujeres y 1,1 millón de hombres). Así, se evitarían aproximadamente 630 000 muertes prematuras atribuibles al tabaco. La reducción de la carga de enfermedad permitiría ahorros para el sector salud cercanos a MX$42 800 millones y evitaría que más de 250 000 personas (entre ellas, 50 200 mujeres fumadoras) cayeran en situación de pobreza. Además, se recaudarían MX$16 200 millones adicionales por año, de los cuales el quintil más bajo aportaría menos de 3% (1% en el caso de las mujeres de menores ingresos).Conclusiones.La epidemia de tabaquismo tiene patrones claramente diferenciados entre mujeres y hombres y reflejan un componente de género. Si bien los beneficios del impuesto al tabaco en México tendrían magnitudes relativas al estado actual de la epidemia en cada caso, estos podrían contribuir a un objetivo más amplio de justicia social mediante la reducción de las inequidades de género.

The association between the retail price of manufactured cigarettes and bidis on current smoking status in India.

INTRODUCTIONIn India, the retail prices of bidis and cigarettes varied between the two Global Adult Tobacco Surveys (GATS) conducted in 2009–2010 and 2016–2017. The relationship between the retail price of smoked tobacco products and their use is unclear for India. Our study thus aimed to use available datasets to investigate the association between the retail price and current smoking status of bidis and cigarettes in India.METHODSCurrent smoking status data for bidis and cigarettes were obtained from the two GATS rounds. The average state-level retail prices of bidis and cigarettes were obtained from India’s Consumer Price Index- Industrial Workers database. Descriptive statistics were used to describe current smoking status patterns. Generalized Linear Mixed Models were used to investigate the association between the retail prices and current smoking status of bidis and cigarettes.RESULTSFor cigarettes, an increase in the average retail price by one Indian Rupee was associated with a reduction in the odds of being a current smoker of 7% (OR=0.925; 95% CI: 0.918–0.932, p<0.001). For bidis, the association between the retail price and current smoking status was not statistically significant (OR=1.01; 95% CI: 1.00–1.02, p=0.082).CONCLUSIONSCurrent increases in the retail prices of tobacco products in India seem to have an impact on the use of cigarettes but not bidis. This highlights the need for tobacco product tax increases that result in sufficient retail prices increase to make all tobacco products less affordable and reduce their use.

When Cigarette Sales Suddenly Become Illegal: Evidence From an Online Survey of South African Smokers During COVID-19 Lockdown.

IntroductionDespite high levels of illicit trade in the tobacco market, the South African government banned the sale of tobacco products in March 2020 as part of its COVID-19 response. The ban lasted five months. We assess how the ban affected the cigarette market for a sample of smokers by comparing the price, consumption, and competitive landscapes before (March), during (May and June), and after (September) the ban.MethodsWe conducted three online surveys of cigarette smokers, asking about smoking behavior before, during, and after the ban. We use descriptive statistics and OLS regressions to estimate the impact of the ban on the South African cigarette market, focusing on the price of cigarettes.ResultsMost smokers continued smoking despite the sales ban. During the ban, prices increased by over 240%. Purchases shifted away from the normally dominant brands of the multinational tobacco companies to local/regional producers. The covariates of price changed substantially during the sales ban, the most pronounced being inter-provincial effects. After the ban, the market shifted back to its preban state, with an overall increase in price of 3.6%.ConclusionsCigarette sales continued despite the sales ban, further entrenching an already large illicit market. Had the government substantially increased the excise tax, rather than banned the sale of tobacco products, it would have achieved a similar public health outcome, received more revenue, and presumably not further entrenched the illicit market.ImplicationsSouth Africa temporarily banned the sale of tobacco as part of its COVID-19 response. Despite the ban, the sale of cigarettes did not cease; rather, it caused major disruption to the cigarette market. The ban inadvertently benefited manufacturers who were previously disproportionately involved in illicit activities; these manufacturers increased their market share even after the ban was lifted. The ban may have further entrenched South Africa’s already large illicit market. Our results show that there are unintended consequences associated with a temporary ban on the sale of cigarettes.

The association between smoking behaviors and prices and taxes per cigarette pack in the United States from 2000 through 2019

ObjectiveThe conclusions on how tax and price increases affect smoking behaviors are mixed. This work is devoted to re-evaluating the relationship between cigarette prices and taxes and smoking behaviors.MethodsUsing 2000–2019 Behavioral Risk Factor Surveillance System data, we employed linear mixed-effect models to re-examine the impact of cigarette prices and taxes on smoking prevalence and the proportion of current smokers having tried to quit smoking in the past 12 months. All the analyses were conducted for the general population, then by age group, gender, race/ethnicity, and income level.ResultsThe results indicate that higher cigarette prices and taxes were associated with a decrease in smoking prevalence and an increased likelihood of quitting smoking. Cigarette tax and price increases produced the most powerful impact on the smoking prevalence of 18- to 24-year-olds. The estimates also show that males tended to be more price-sensitive than females. Raising cigarette prices and taxes was estimated to be more effective in reducing the smoking prevalence among non-Hispanic Blacks and Hispanics when compared to non-Hispanic whites. Cigarette price and tax changes were likely to have a smaller effect on individuals with annual income under $25,000 relative to individuals with higher income levels.ConclusionsIncreases in cigarette prices and taxes are significantly associated with a reduction in smoking prevalence and an increased likelihood of quitting smoking among adults across different demographic and socioeconomic groups. However, as cigarette price and tax changes disproportionately affect low-income individuals, raising cigarette prices and taxes may deepen income disparities.

The effect of cigarette prices and income on cigarettes consumption and state revenue: Case study of 33 provinces in Indonesia

Besides having a destructive impact on smokers, cigarette consumption also creates a negative externality for passive smokers. Thus, the government implements cigarette excise to control cigarette consumption while increasing state revenue. This study aims to determine the effect of cigarette prices and income on cigarette consumption and the impact of excise tariffs on cigarette consumption and excise tax revenue. The data used are 33 provincial data in Indonesia from 2013 to 2018. The methods in this research are panel data regression using fixed-effect with GLS for model one and a random effect for model two. The results indicated that the cigarette price elasticity and income elasticity of demand were -0.317 and 0.635, respectively, showing that cigarette consumption is inelastic. In the simulation, an increase in excise tariffs by 10%, 25%, and 50%, respectively, led to a decrease in cigarette consumption by 1.55%, 3.86%, and 7.73%, and an increase in state revenue from excise by 8.3%, 20.17%, and 38.41%. It can be concluded that an increase in cigarette excise rates causes an increase in cigarette prices, leading to a decrease in cigarette consumption. Furthermore, the decline in cigarette consumption increased state revenues from excise.

The effect of price on cigarette consumption among youth in Indonesia: Implications for tobacco tax policy

AbstractThe study aimed to estimate cigarette price elasticity among youth in Indonesia. We used a two‐part model to estimate the impact of price on smoking participation and smoking intensity on smokers. Data were obtained from National Socioeconomic Survey or Survei Sosial Ekonomi Nasional 2015, 2016, 2017, 2019, and 2020. This study included males and females aged 15–24 years from all districts. We controlled for socioeconomic variables such as age, sex, education, working status, marital status, wealth quintile, place of residence, geographical region, and year of the survey. Price was negatively associated with cigarette consumption. The estimated total cigarette price elasticity was approximately −0.6740, meaning a 10% increase in price would reduce cigarette consumption by 6.74%. We also found that females were more sensitive to price change than males. This result indicated that the percentage change in demand for cigarettes among youth is less than the percentage change in price or inelastic. Therefore, a higher tariff and simpler tobacco tax structure is necessary to make cigarettes less affordable in Indonesia.

Trends and Determinants of Cigarette Tax Increases in Japan: The Role of Revenue Targeting.

Cigarette prices in Japan are lower than those in most other high-income countries. A more striking fact is that cigarette tax revenues have been kept almost flat at just over two trillion JPY (Japanese yen; 18.2 billion US dollars) over more than three decades, despite steadily declining cigarette sales and seemingly weakening pressure from stakeholders with a vested interest in the tobacco industry. We attempted to examine trends and determinants of cigarette tax increases in Japan. In particular, we hypothesized that the Japanese finance ministry adjusts cigarette taxes to meet a revenue target. Under this hypothesis, we searched for the most plausible amount of the minimum target of tax revenue that corresponds to cigarette tax increases over the past 37 years (1985–2021) using public data on cigarette sales and taxes. The results revealed that two trillion JPY was the minimal revenue target that could plausibly explain the increase in cigarette tax. In addition, the timing and magnitude of cigarette tax increases have been successfully set to maintain stable tax revenues. A key determinant of cigarette tax increases in Japan has been hard revenue targets, rather than public health concerns.

The introduction of tobacco excise taxation in the Gulf Cooperation Council Countries: a step in the right direction of advancing public health

BackgroundThe Gulf Cooperation Council (GCC) countries relied, until recently, solely on import duties for tobacco products. The agreement for the introduction of an excise and value added tax (VAT) in 2016 and 2017, respectively, in most GCC countries, was a major breakthrough for public health. There is, however, ample room for improvement.MethodsThe study examines the outcomes of tax reforms, for both public health and public finances, based on the World Health Organization (WHO) recommendations and best practices worldwide. Tax simulations were performed using the WHO TaXSiM model. The study is based on data from Saudi Arabia, the only GCC country for which sufficient data existed.ResultsWe recommend a stepwise tax reform, which involves increasing the current ad valorem excise tax rate, phasing out import duties keeping total tax share constant and introducing a minimum excise, and finally switching to a revenue-neutral specific excise. Specific excises must be adjusted for inflation and income increases. If implemented, cigarette tax reform simulations show that the recommended reforms would lead to a higher than 50% increase in cigarette prices, 16% reduction in cigarette sales and almost 50% increase in total cigarette tax revenue. A significant number of cigarette-related deaths would be averted.ConclusionsThe recommended tax reforms are expected to lead to significant improvements in both public health and tobacco tax revenues. Our results provide useful insights that are of relevance to the whole GGC region. The effectiveness of the reforms, however, requires a strong tax and customs administration, including the establishment of a good database to monitor and advance public health.

Studi Komparatif Potensi Financial Distress pada Industri Rokok di BEI (Model Zscore Gover dan X Score Zmijewski)

One of the state's opinions comes from excise payments made by cigarette companies in Indonesia, at the end of 2021 the issue of cigarette prices which will be increased in 2022 becomes an interesting phenomenon to study the potential for bankruptcy of cigarette companies listed on the Indonesia Stock Exchange. The purpose of this study is to analyze the potential for financial distress in cigarette companies and compare the results of the calculation of the springate and zmijewski models in cigarette companies on the Indonesia Stock Exchange. The research method used is quantitative descriptive analysis, with the data source coming from the company's annual report. The results showed that there was a potential for bankruptcy at PT. Bentoel Internasional Investama Tbk and PT. Wismilak Inti Makmur Tbk while for PT. Hm Sampoerna Tbk and PT. Gudang Garam Tbk has no potential for bankruptcy in 2017 to 2019, it's just that in 2020 the company PT. Bentoel Internasional Investama Tbk is experiencing financial difficulties. Based on the calculation results of the Springate and Zmisjewski models, there is also no difference from the results of the calculation of financial distress in cigarette companies on the Indonesia Stock Exchange.

The priorities of the state excise policy

The research subject includes the theoretical basis and mechanism of excise policy formation and realization. The study aims to determine the priorities of excise policy development in the context of developing its regulatory impact on economic processes and increasing the fiscal potential of excise duty. Methods. In order to achieve the appropriate tasks, we used a set of methods and approaches that helped to ensure the conceptual unity of our investigation. The systemic and structural approaches, generalization methods, analytical evaluation, synthesis, comparison, scientific abstraction are applied. Results. The fiscal significance of the excise tax in the OECD countries and Ukraine for the last two decades has been determined. The main stages of excise policy development in 2001–2021 are systematized. The volumes of illegal circulation of excisable goods and losses of tax revenues are analyzed. Finally, the priorities of the excise policy are substantiated. Practical implications. Tax policy and instruments of its implementation. Conclusions. Ukraine could use the foreign experience of floating excise tax on fuel in a period of high and rising prices for petroleum products. It is necessary to eliminate the fundamental reason for expanding the illegal tobacco market - a significant difference in the growth rate of cigarette prices (primarily due to the rising tax burden) and household income. Therefore, it is reasonable to change the current schedule of excise duty rates by revising them and slowing down the growth from 20% to 10-12% annually. Furthermore, it is actually to return criminal liability for the illegal movement of tobacco products across the customs border of Ukraine. It is necessary to increase further the institutional capacity of the State Customs and State Border Services. The government should improve the institutional environment for the e-commerce of excisable goods. The priority direction of the taxation development of alcoholic beverages and tobacco products is introducing an automated control system over their production and circulation (electronic excise stamp). A further increase in the tax rate on alcohol should be taken with caution, understanding the potential threats to reduce legal production, and replacing this niche with counterfeiting, which will lead to lower revenues or a tiny increase. The main criterion for collecting excise tax for cars should be technical and operational characteristics related to fuel efficiency.