Bosnia and Herzegovina has the highest cigarette tax rate in the world, at 86 percent. This surpasses Israel and Slovakia, which have rates of 85 percent and 84 percent respectively.
This tax is calculated on the final price paid by the consumer and includes excise duties, value-added tax, import duties, and other taxes. According to a 2015 WHO report, tobacco taxation is the single most effective policy for reducing tobacco consumption globally.
The World Economic Forum also shows that a 10 percent increase in tobacco prices leads to a 4 percent reduction in tobacco consumption. However, this observation varies significantly between high-income and middle-income countries.
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