From the beginning of next year, the price of all tobacco products in the country is expected to increase. The reason is the planned increase in excise duty rates, which is included in the draft budget for next year. The change covers both traditional cigarettes and heated tobacco products and liquids for electronic cigarettes, including those without nicotine, BNT reported.
The increase is part of a four-year program for a gradual increase in excise duties, with which Bulgaria aims to reach the average levels for the European Union. So far, the country has maintained some of the lowest rates, especially for new types of smoking products.
The specific amendments provide for the excise duty on cigarettes to increase from 107.57 euros to 113 euros per 1,000 pieces. After the addition of 20% VAT, the expected price increase per pack of cigarettes will be around 30 stotinki, if manufacturers and retailers do not change their mark-ups.
The excise duty on heated tobacco products increases by 10 euros per kilogram, which will lead to a price increase of around 15 stotinki per pack of 20 sticks. Similarly, heated products that do not contain nicotine will also increase in price.
The excise duty rate for e-cigarette liquids, regardless of whether they contain nicotine, increases from 0.23 to 0.25 euros per milliliter. Thus, the price of a standard e-cigarette with 2 ml of liquid will increase by around 10 stotinki, and a 20 ml bottle – by nearly a leva.
An increase is also planned for other categories: the tax on cigars and cigarillos will be 212.70 euros per 1,000 pieces, and for smoking tobacco - 121.96 euros per kilogram.
At the beginning of the year, there will still be products on the market with old tax labels, which will be sold at the same prices until supplies run out. Financial estimates show that the higher excise rates are expected to bring in 130 million euros of additional revenue to the state budget, to which about 26 million euros will be added from VAT.