The excise policy for tobacco products: an effective measure of financial protection in health

Abstract

The purpose Diseases caused by the consumption of tobacco products, which are among the main causes of premature deaths in the Republic of Moldova, affect the development of human capital and generate substantial economic costs for the country. Methods The synthetic presentation of the content and the stages of the article differentiate several research methods of the approached topic: methods of data and information collection, processing and organization of the collected information. Relevant results Taxation of tobacco products is an effective tool to reduce their consumption and associated health risks, increase state budget revenues and protect the population from the effects of poverty caused by high health care spending and absenteeism due to lost work days. In the future, not only the tax rates for tobacco products could be increased, but the tax structure could also be simplified by adopting uniform tax rates for both: filter and unfiltered cigarettes, in order to prevent substitution or switching to cheaper cigarettes as a result of increased tax rates for brands of tobacco products previously consumed. Conclusions Recent experience in the Republic of Moldova shows, that the government could discourage smoking not only by raising awareness of the risks, but also by adopting higher tax rates to encourage higher cigarette prices and the implementation of other measures to combat the consumption of tobacco products. JEL: H21, H51, I13, I15, I18.