Acta Univ. Agric. Silvic. Mendelianae Brun. 2016, 64(6), 2191-2200 | DOI: 10.11118/actaun201664062191

Economic Impacts of Cigarette Taxation Development in the Czech Republic and the Slovak Republic

Jarmila Zimmermannová1, Jan Široký2
1 Department of Economics, Moravian University College Olomouc, tr. Kosmonautů 1288/1, Hodolany, 779 00 Olomouc, Czech Republic
2 Department of Accounting, Faculty of Economics, VŠB - Technical University of Ostrava, Sokolská 33, 701 21 Ostrava, Czech Republic

This paper presents the analysis of economic impacts of cigarette taxation development in the Czech Republic and the Slovak Republic in the period corresponding with the membership of both countries in the European Union, precisely from May 2004 until January 2016. After introduction focusing on the issue of cigarette taxation and the overview of the international scientific research in this area, the authors focus on the analysis of cigarette taxation increase in both of the countries. Then the analysis of cigarette taxation impacts on expenses of selected types of households on consumption of tobacco products in the analyzed period is provided, using the methods of correlation and regression analysis. Finally, the results from the Czech Republic and the Slovak Republic are compared. Dealing with tax rates in EURO, it is obvious, that the increase of cigarette taxation was higher in the Czech Republic than in the Slovak Republic in the period 2004-2016. However, the expenditures of households on tobacco products consumption in both of the countries have not been decreasing.

Keywords: Excise taxation, Cigarettes, Incidence, State budget, Expenses of Households, Czech Republic, Slovak Republic
Grants and funding:

The contribution is processed as an output of a research project by the SGS under the registration number SP 2016/42.

Prepublished online: December 21, 2016; Published: January 1, 2017  Show citation

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Zimmermannová, J., & Široký, J. (2016). Economic Impacts of Cigarette Taxation Development in the Czech Republic and the Slovak Republic. Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, 64(6), 2191-2200. doi: 10.11118/actaun201664062191
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