Price per pack of cigarettes! tax!

The second type is an ad valorem tax. This is a percentage of the retail price of the product. Higher-priced cigarette brands therefore generate higher tax amounts because the tax is calculated based on the price of the pack.

In addition to these excise taxes, cigarettes may also be subject to general sales taxes or value-added taxes (VAT). These taxes are applied in the same way as they are for many other consumer goods, further increasing the final price paid by smokers.

Because of these combined taxes, the cost of a pack of cigarettes can vary dramatically between regions. In some countries with strict tobacco control policies, cigarette prices are intentionally kept high through heavy taxation. In others, lower taxes mean cigarettes remain relatively affordable.