Background:
International good practice shows that tobacco taxes are the single most important element of effective tobacco control intervention. However, in many countries excise policy is still facing many challenges related to the tobacco industry’s attempt to control tobacco sales prices.

Objectives:
To investigate current situation of tobacco taxation measures in Bosnia and Herzegovina and define recommendations for more effective tobacco control measures aimed to eliminate the influence of the tobacco industry.

Methods:
Overview on current trends of tobacco taxation in Bosnia and Herzegovina in line with good international practice. Descriptive analysis of available data sources on tobacco and economy and mechanisms for illicit trade control in Bosnia and Herzegovina, past, present and future actions.

Results:
Current measures in illicit trade control in BiH are not effective and show an urgent need for more effective involvement of relevant institutions significant for tobacco control.

Conclusions:
More actions should be taken in the strengthening of tax administration system, control over the supply chain, penalties, governance and education of the public on benefits from elimination of illicit trade in BiH.