Press Release: Fourth Cigarette Tax Scorecard Shows Limited Progress, Substantial Opportunity for Governments
The fourth edition of the Economics for Health Cigarette Tax Scorecard (formerly released under “Tobacconomics”) is out today, December 15, 2025, and shows that most governments are not implementing best practices in tobacco taxation. Tobacco use is one of the leading causes of preventable death, and tobacco taxes remain the most effective, yet under-utilized, tools to reduce consumption and raise tax revenues.
The Scorecard shows that the 2024 global average cigarette tax score of 2.01 points—an average of four component scores—has not changed significantly since 2022 when it was 2.02. Looking closer, 54 countries out of 171 saw an increase in their overall score from 2022 to 2024, while 44 countries saw a decrease. Broadly, tobacco tax performance has somewhat improved over the l0-year period from 2014 when the average score was 1.90.
Only two countries received an overall score of 4 or higher in 2024: the United Kingdom of Great Britain and Northern Ireland (UK) and Finland. These top performers implement effective tobacco tax systems, although both countries would benefit from further reducing cigarette affordability over time with tax rates that are raised more on a consistent basis. Unfortunately, most governments have a long way to go, as only 60 out of 171 countries scored 2.50 points or higher.
Findings from this edition further raise concerns about cigarette affordability around the world. Only the Eastern Mediterranean region was able to reduce affordability over time, on average. Broadly speaking, governments are not sufficiently raising taxes or updating them for inflation and real income growth. As a result, cigarette affordability is staying constant or even increasing in some countries.
On the other hand, average cigarette prices in 2024 increased across all regions reversing a declining trend from 2022. This change, however, stems mainly from industry price increases, rather than from tax reforms in most countries. As a result, tobacco companies are seizing these revenues as additional profits, not governments. Furthermore, prices in low-income countries, where tobacco companies aim to expand their markets, are still declining on average.
The Scorecard also shows that governments are continuing to opt for less effective tax structures, such as complex, tiered systems, or those that rely on ad valorem taxes. The average overall score in this component increased only slightly since 2022, and some countries have even regressed. Unfavorable tax structures undermine the effectiveness of tax increases and can be difficult to administer.
With growing economic instability in the post-pandemic recovery period, along with cuts to foreign aid, higher tobacco taxes remain a relatively untapped source of new revenues. In the longer term, effective cigarette taxation can also reduce the strain on health systems by improving population health, especially in low-income countries, and increasing economic productivity.
The Economics for Health Cigarette Tax Scorecard (4th edition) uses the latest data from the biennial World Health Organization Report on the Global Tobacco Epidemic, 2025 (RGTE), along with macroeconomic inputs from the World Bank and other sources, to assess cigarette tax performance in 171 countries.
The Scorecard presents four key components of cigarette tax systems—cigarette price, affordability change, tax share of price, and tax structure—and outlines opportunities for governments to align policies with best-practice recommendations. The latest edition of the Scorecard can be found at www.EconomicsforHealth.org.