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Developments in the Western Balkans Signal Crucial Progress in Tobacco Control in the Region

Economics for Health began working with think tanks in the Western Balkans back in 2018, (under our previous name, “Tobacconomics”). Since then, we have explored the economics of tobacco control and especially tobacco taxes across the region and shared these results with decision makers and other stakeholders. As this evidence base grew, we are excited to see more and more excitement about tobacco taxes from policy makers. 

In March of this year, we co-organized an event, titled “Meeting on Measures to Eliminate Illicit Trade in Tobacco Products in the Western Balkans,” with the Montenegro Ministry of Finance, the WHO Montenegro Country Office, and the Secretariat of the WHO Framework Convention on Tobacco Control in Podgorica, Montenegro. During this meeting, we were joined by the Prime Minister of Montenegro; Finance Ministers from Albania, Montenegro, and North Macedonia; high-level policy makers from Bosnia and Herzegovina and Serbia; the World Bank; and the OECD; among others.

Together with these key stakeholders, we discussed how to tackle the illicit tobacco trade and strengthen tobacco tax policies in the region. Representatives from Montenegro, especially, shared with their peers about their success in significantly reducing the size of the illicit market by strengthening tobacco tax administration, including prohibiting storage of cigarettes in free zones, increasing surveillance, and more. This experience should serve as an example for other countries in the Western Balkans and around the world. Furthermore, the event was a perfect opportunity to highlight the importance of strong regional coordination to effectively target illicit trade.

This fruitful discourse is summarized in the conclusions presented below, endorsed by Dragan Demirović, the Deputy Minister of Finance of Serbia; Gordana Dimitrieska Kochoska, the Minister of Finance of North Macedonia; Novica Vuković, the Minister of Finance of Montenegro; and Petrit Malaj, the Minister of Finance of Albania. Notably, the ministers have committed to enacting established best practices to fight against illicit tobacco, while continuing to regularly increase tobacco taxes to effectively discourage consumption. We look forward to continuing to work together to bring these aims to fruition in the Western Balkans!

  1. The price and tax measures on tobacco products are effective and important means to reduce tobacco consumption and its related costs, and represent a significant revenue stream for financing development in many countries
  2. The illicit trade in tobacco products increases the accessibility and affordability of tobacco products, thus fueling the tobacco epidemic, undermining tobacco control policies, causing substantial losses to government revenues, and funding organized crime groups.
  3. The Protocol to Eliminate Illicit Trade in Tobacco Products, adopted by consensus by the Parties to the WHO Framework Convention on Tobacco Control (WHO FCTC), presents a critical tool with the objective of eliminating all forms of illicit trade in tobacco products through a package of measures implemented by countries in cooperation with each other. The Protocol builds on Article 15 of the WHO FCTC, which requires Parties to implement measures to counter illicit trade in tobacco products and to further control the supply chain.
  4. We need to promote jointly the importance of the Protocol to Eliminate Illicit Trade in Tobacco Products and its ratification, acceptance, approval or formal confirmation especially in the countries that still have not done so and are Parties to the WHO FCTC
  5. It is necessary to insist on mutual cooperation to facilitate the exchange of information and lessons learned relevant to tobacco tax policies and the elimination of illicit trade in tobacco products, while prioritizing activities such as developing tracking and tracing systems and implementing effective controls on all manufacturing and transactions of tobacco and tobacco products in free zones.
  6. We recognize the need to work closely with tax administration and customs authorities, law enforcement agencies, as well as ministries of health and other sectors to strengthen efforts to effectively implement tobacco taxes and eliminate illicit trade in tobacco products.
  7. The cooperation with relevant regional and international intergovernmental organizations in order to support the elimination of illicit trade in tobacco products, including by supporting the ratification, acceptance, approval, formal confirmation, or accession to and the implementation of the Protocol are of critical importance.
  8. We express our concern over the efforts of the tobacco industry, those working to further its interests, and other commercial entities with vested interests to interfere in national public health, fiscal, law enforcement, and regulatory policies; we will insist on the implementation of tobacco tax and price measures, as well as on eliminating illicit trade in tobacco products, in line with Article 5.3 of the WHO FCTC.
  9. We will consider allocating revenue from tobacco taxes to activities intended to achieve the objectives of the WHO FCTC and of the Protocol.
  10. We will insist to regularly increase taxes to reduce the affordability of tobacco products over time and to eliminate illicit trade in tobacco products. Through strengthened legislation, enhanced cooperation, and comprehensive law enforcement measures, we will protect our economies, safeguard public health, foster security, and promote the sustainable development of our region.