Public finances and tobacco taxation with product variety : Theory and application to Senegal and Nigeria

The use of excise taxes – ad valorem and specific – as a means to control cigarettes consumption is a relatively new toolkit in many developing countries. There is a long and documented history throughout the world of governments implementing such tax schemes to generate revenues. In many instances, tobacco taxation has also been highlighted as an efficient means of mobilizing domestic resources to finance health and other important development programmes. The recent