Institutional and policy challenges in advancing tobacco control in Kosovo

Kosovo faces a high smoking prevalence of 36.4%, which stands nearly 50% higher than the EU average of 25.3%. Tobacco remains highly affordable due to low excise rates, weak regulatory enforcement, and insufficient alignment with international standards, all of which have sustained elevated consumption levels. Although excise rates have more than doubled since 2012, reaching EUR 55/1,000 cigarettes today, they still remain far below the EU minimum threshold of EUR 90/1,000 cigarettes.

This study evaluates the current state of the legal framework governing tobacco taxation in Kosovo, complementing the analysis with insights from expert interviews. The findings reveal critical gaps in policy coordination and enforcement. The absence of a formal excise calendar creates uncertainty for both policy makers and the private sector, especially considering how important excise calendars are to prevent the increase of illicit tobacco markets as a result of unexpected price spikes. Moreover, coordination between the Ministry of Finance, Kosovo Customs, and the Ministry of Health is limited, with no unified mechanism to balance revenue and public health goals. These institutional and legal shortcomings undermine the effectiveness of fiscal measures aimed at reducing tobacco use and aligning Kosovo with EU standards.

We recommend that policy makers adopt a multi-year excise calendar aligned with the EU Tobacco Taxation Directive, strengthen institutional coordination and transparency, and conduct regular, high-quality surveys to track smoking prevalence, consumption patterns, and policy impacts. While not exhaustive, implementing these recommendations could potentially reduce smoking prevalence, leading to improved public health and enhanced household welfare.

Keywords: Excise, Taxation, Tobacco, Smoking

JEL classification: H23, I12, I18, L66

Countries covered: Kosovo