Slovakia Case Study

Slovakia has maintained low levels of non-domestic tobacco use and seen a general decline in tobacco consumption, driven mainly by reduced factory-made cigarette (FMC) use. While domestic fine-cut tobacco (FCT) sales have grown slightly, FCT remains a small part of the market. In 2024, Slovakia introduced steep FCT-specific tax increases, making FCT relatively more expensive than FMC, a trend unusual among other countries. Although tax revenues have remained stable, the recent tax change may weaken FCT’s role as a domestic alternative. It could lead consumers toward non-domestic tobacco, potentially harming both revenue and progress in curbing illicit trade.