This chapter discusses the design and administration of tobacco excise taxes. With respect to design, the issues reviewed here include the choice of tobacco products to excise, the treatment of imports, and the choice of specific taxes (based on quantity) versus ad valorem taxes (based on value).We also briefly discuss the impact of smuggling on tax revenues. With respect to tax administration, the issues discussed here include the use of registration and licensing to facilitate administration, bonding, physical control of tobacco products, and the use of tax stamps. Finally, the revenue-generating potential of higher cigarette taxes is examined. Using data on tax revenues, tax rates, and prices, we calculate that an increase in cigarette taxes of 10% globally would raise cigarette tax revenues by nearly 7%, with relatively larger increases in revenues in high-income countries and smaller, but sizable, increases in revenues in low-income and middle-income countries.