Evolution of excise duty rates and their impact on household consumption between 2010 and 2022

This thesis analyses the impact of changes in excise taxes on household consumption in the Czech Republic in the period 2010-2022. The primary objective is to test the hypothesis that changes in excise tax rates have a significant impact on household consumption of taxed products. Furthermore, the paper focuses on the health consequences associated with the consumption of tobacco products and alcohol and their impact on public health and health system economics. The theoretical part of the thesis provides an overview of key economic theories, such as Keynesianism and supply-side economics, and their perspectives on taxes. It also examines the legislative framework of excise taxes in the Czech Republic, including Act No. 353/2003 Coll., and the impact of tax harmonisation within the European Union on Czech tax policy. In the practical part of the thesis, data from the Czech Statistical Office and the Institute of Health Information and Statistics of the Czech Republic are analysed. Various statistical methods, including the OLS linear regression model, are used to assess the impact of changes in excise taxes on consumption and population health. The results show that changes in excise tax rates have a statistically significant effect on consumption of taxed products and contribute to changes in population health indicators. The paper also examines the impact of tax changes on the black market for tobacco products, the economic indicators of Philip Morris CR, and state budget revenues. Finally, the implications and options of tax policy for ensuring sustainable public finances and promoting public health in the Czech Republic are discussed.