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Montenegro became a Party to the WHO Framework Convention on Tobacco Control in 2006 and ratified the Protocol to Eliminate Illicit Trade in Tobacco Products in 2017. Tobacco excise hikes, undertaken in Montenegro in 2009-2011, were successful both in fiscal and public health terms. Revenues from tobacco excises rose from about 4 million in 2007 to 44 million euro in 2011. Annual cigarette sales declined from more than 1.5 billion cigarettes in 2008-2011 to less than 1 billion cigarettes in 2014 and further years. However, in 2013-2016, tobacco excise increases were too small to reduce tobacco affordability and tobacco sales, and tobacco revenues did not change much. In August 2017, Montenegro adopted an ambitious plan of excise tax increases; however, the tobacco industry responded with series of hidden actions (forestalling and price over-shifting) which temporarily reduced tobacco excise revenue in early 2018. As the next high increase of excise rate was scheduled for January 2018, and at the same time, VAT rate increased from 19 to 21, the industry substantially increased cigarette supply in the second half of 2017 and sharply reduced it in early 2018 as it already had in stocks large numbers of cigarettes for which excise was paid in 2017. The excise revenue substantially increased in late 2017, but declined in early 2018 despite the excise rate increase. The industry organized the media campaign to persuade the government that this revenue decline was allegedly caused by tax-driven growth in cigarette smuggling (while no rigorous evidence of such growth was presented), and the only way to fight smuggling is the reduction of cigarette excise. From September 2018, the excise rates were reduced, while they are still higher than those planned before 2017. The plan of annual tobacco excise changes until 2025 was already adopted by authorities, but the proposed changes have rather low potential to reduce the tobacco consumption and to increase government revenue. The expected total excise rate in 2025 will be below 90 euro (minimum EU level). Montenegro is able to conduct a more aggressive and successful tobacco taxation policy which can both reduce tobacco consumption and increase tobacco revenue.

Almost 30 per cent of the adult population of the Association of Southeast Asian Nations (ASEAN) smokes. All but one of the ASEAN members are currently parties to the WHO Framework Convention on Tobacco Control (WHO FCTC). The outlier is Indonesia, the most populous of the ten ASEAN countries. Multilaterally, all ten ASEAN members are World Trade Organization (WTO) members and subject to its trade rules. Regionally, ASEAN is in the process of accelerated economic integration, with the aim of establishing the ASEAN Economic Community (AEC) in 2015. A Common Effective Preferential Tariff (CEPT) system, set up under the ASEAN Free Trade Area (AFTA) arrangement, has existed since 1992, propelling members towards trade liberalisation and elimination of tariffs. At the same time, ASEAN has been negotiating trade and investment treaties with external partners, which have separate liberalisation targets and implications. In tandem, the overarching ASEAN Strategic Framework on Health and Development (2010–15) was established under the ASEAN Socio-Cultural Community (ASCC) Blueprint, to introduce and implement healthrelated initiatives in ASEAN. One area of focus of this framework is healthy lifestyles. In 2010, under these auspices, ASEAN health ministers committed to addressing tobacco control as a priority to promote healthy living. As a result, legislative and non-legislative initiatives have been introduced. In July 2012, ASEAN health ministers announced that tobacco would not be included in tariff liberalisation of the AFTA.