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The estimate of price-inelastic demand for cigarettes seems reliable, as most estimates for the price elasticity fall into the range from 0.25 to 0.5 for high-income and 0.5 to 1 for LMICs.34 It also corresponds to the existing estimates of price elasticity in SEE countries from country-specific studies based on the microeconometric analysis.16 35 36 The separate estimates of the price and income effects highlight that the price and income elasticities did not simply add up to affordability elasticity

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5 TL INCREASE IN RETAIL SALES PRICE OF A PACK OF CIGARETTES It is calculated that the increases in excise duty and VAT in the cigarette sector and the increase in the financial multiplier to 7.5 will bring the need for an increase of more than 5 TL in the retail sales price of a pack of cigarettes at the average price level.

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