Governments have the potential to use tobacco taxes to manage consumption, raise revenue and promote public health. Of all tobacco-product taxes, excises are the most important for achieving the health objective of reduced tobacco consumption, since they are uniquely applied to tobacco products and raise the prices of these products relative to the prices of other goods and services. Both specific and ad valorem excises are instruments the government can use. A single-rate specific taxation would lead to relatively higher price increases and reduce the market share of cheap cigarettes. In addition to specific taxation, depending on the characteristics of the product consumed most widely and the structure of each industry, the government can also impose an ad valorem tax to adjust specification attributes (appeal and variety) to a desired level and raise the required revenue.