Is It Possible to Reduce Cigarette Consumption by Taxes? A Comparison Between Turkey and The European Union

Abstract

This study investigates whether tax structures are significant determinants of cigarette consumption patterns. The study analysed the tax burden on cigarettes in Turkey, and the tax rates were compared with the European Union (EU) countries. Then, it compares smoking trends in Turkey and EU countries. In the study, data from the statistical office of the European Union and the official institutions of Turkey were used. This study concludes that, in contrast to EU countries, ad valorem taxes in Turkey have a larger share than specific taxes. In addition, taxes on cigarettes have a deterrent effect in EU countries but not in Turkey. Thus, taxation techniques may be as important as tax rates in changing consumer preferences.