The study analyses the Lithuanian system of excise taxes imposed on tobacco products and the trends in the Lithuanian tobacco market in 2002-2010. It aims at examining the impact the increase of excise tax on tobacco products, together with other economic and social factors, had on both the legal and illegal tobacco products market, on the consumption of tobacco products and on the realization of the objectives that were pursued by the excise policy. The data obtained show that various social, economic factors influenced the dynamics of consumption of illegal cigarettes and smuggling in 2002-2010. However, the excise policy carried out by the government was an especially strong impact on the illegal market. More about it can be found in the LFMI‘s press release: LFMI‘s analysis: illegal cigarettes consumed in 2010 make up about half of the Lithuanian cigarette market.
