The effi̇ci̇ency of exci̇se duti̇es on alcohol and tobacco products: The case of Turkey and Azerbaijan

Special consumption tax is one of the most applied taxes by both developed and developing countries.As with other taxes, the special consumption tax is applied not only for financial purposes but also for economic and social purposes. Thus, with the high rate of SCTover cigarettes and alcohol, it is aimed to provide income to the state, as well as to decrease or cease the consumption of cigarettes and alcohol and to compensate for the negative externalities caused by these substances. In addition to taxes, the governments also implement the other methods to reduce the consumption of smoking and alcohol. The prohibition of advertisements for consumption of substances like cigarettes and alcohol, and raising awareness of the society about the harms of smoking and alcohol consumption through the press and media are also included in these methods. The purpose of this study is to determine the way of how theincrease and decrease in SCT over cigarettes and alcohol is primarily perceived by individualsand then how they influence the use of alcohol and cigarettes.As a result of the survey conducted for this purpose; although the cigarettes and alcohol users in Turkey and Azerbaijan know the high rate of SCT over these products It has been determined that the high rate of SCT, which is very difficult for them to quit causes an increase in use of illegal cigarettes and alcohol instead of reduction in use of these products. İt has been evident that raising the rate of SCT over the cigarettes and alcohol in both countries is not effective enough to reduce the use of these products. But, all that it can be said the SCT over the cigarettes and alcohol has become more successful in Azerbaijan rather than in Turkey. Keywords: Special Consumption Tax, Cigarette, Alcohol, Azerbaijan, Turkey, Correlation and Regression Analysis.