The Impact of Excise Duty on Tobaco Products to Consumers in the Czech Republic

This bachelor thesis aims to compute and then compare the effective tax rate on tobacco products and to determine the impact of the tax rate on taxpayers of various income groups. Finding effective tax rate and the impact it is done for the years 2009 to 2014 using data from the household budget statistics. Progressivity index is checked by Kakwani´s method which is based on comparing curves tax concentration curves and income concentration, Lorenz curve. The second method, the effective tax rate, which are used for two different tax bases, the spending on tobacco and net income. The comparison analysis is a regressive impact of the tax on tobacco products into ten income groups. Tax more falls on taxpayers with lower incomes. Results at the effective rate is the basis for spending on tobacco were different from other results. According to verbal assessment progressivity index is mostly proportional impact in all years except 2012, which is slightly regressive. To analyze the impact of taxes on tobacco products would not recommend using the method of effective tax rates, which are used as the denominator in the tax base expenditure on tobacco