Revenue from excise taxes on cigarettes amounted to €46.2m by October. It is almost 12% increase, or €5m compared to the last year. This shows that the August increase in the excise rate has positive effects, the Ministry of Finance told Pobjeda.
In August, cigarette prices went up to 40% per pack after the government’s decision to increase excise taxes on cigarettes from €24 to €30 per 1000 pieces. This excise is valid until the end of this year. After that, it will be increased to €40 per 1,000 pieces, which according to rough estimates is to result in price increase of up to €0.40-€0.50 per pack.
The Ministry of Finance explains that there was a 14% revenue increase after the application of the new excise rate started in August until October.
“These data indicate that planned revenue from the excise tax increase will be achieved by the end of the year,” the Ministry of Finance said.
The fiscal strategy foresees that the effect of the increase in excise duties will be an increase in budget revenues by €17.8m compared to 2016.
