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Assessing the impact of excise duties on a state’s revenues: the case of Greece

Author

Listed:
  • Christos Papageorgiou

    (Department of Economics, University of Peloponnese, Tripolis Campus, Tripolis, Greece)

  • Panagiotis Farlekas

    (Department of Economics, University of Peloponnese, Tripolis Campus, Tripolis, Greece)

  • Zacharias Dermatis

    (Department of Management Science and Technology, University of Peloponnese, Tripolis Campus, Tripolis, Greece)

Abstract

The purpose of this study is to assess the impact of excise duties on tobacco products on state’s revenues. Increasing excise duties on tobacco may act as a means to reduce the consumption of this product and thus to have a positive effect on citizens’ health and prosperity. Our research showed that an increase in consumer income will result in a certain increase in cigarette consumption and an analogous decrease in fine-cut tobacco consumption, while a similar increase in cigarette price results in a small decrease in cigarette consumption and a very large increase in fine-cut tobacco consumption. Additionally, stepping up an anti-smoking campaign results in a decrease in cigarette consumption. Specifically for Greece we found that during 2019 and 2020 there will be a decrease in the state’s revenues from excise duties on tobacco products of €150-€200 million each year.

Suggested Citation

  • Christos Papageorgiou & Panagiotis Farlekas & Zacharias Dermatis, 2021. "Assessing the impact of excise duties on a state’s revenues: the case of Greece," Public Sector Economics, Institute of Public Finance, vol. 45(3), pages 387-412.
    • Handle: RePEc:ipf:psejou:v:45:y:2021:i:3:p:387-412
    DOI: 10.3326/pse.45.3.4
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    References listed on IDEAS

    as
    1. Anastasiou Athanasios & Kalligosfyris Charalampos & Kalamara Eleni, 2021. "Determinants of tax evasion in Greece: Econometric analysis of co-integration and causality, variance decomposition and impulse response analysis," Bulletin of Applied Economics, Risk Market Journals, vol. 8(1), pages 29-57.
    2. Glenn Jenkins & CHUN-YAN KUO & GANGADHAR SHUKLA, 2000. "Tax Analysis and Revenue Forecasting," Development Discussion Papers 2000-05, JDI Executive Programs.
    3. Anastasiou Athanasios & Kalamara Eleni & Kalligosfyris Charalampos, 2020. "Estimation of the size of tax evasion in Greece," Bulletin of Applied Economics, Risk Market Journals, vol. 7(2), pages 97-107.
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    More about this item

    Keywords

    excise duties; specific excise tax; ad valorem excise tax; tobacco product; cigarette; fine-cut tobacco; Greece;
    All these keywords.

    JEL classification:

    • H26 - Public Economics - - Taxation, Subsidies, and Revenue - - - Tax Evasion and Avoidance
    • H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
    • H50 - Public Economics - - National Government Expenditures and Related Policies - - - General

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