First Tobacco, Alcohol Excise Duties Hikes On Apr 1 – Romanian Fin Min

Tobacco excise duty will also increase by EUR7/1,000 cigarettes on September 1.

 

Pogea initially said that tobacco excise duty will grow by EUR14/1,000 cigarettes this year, in two tranches, one in March and the other in August, without significant impact on the price of a pack of cigarettes.

 

The Romanian Government decided in January to increase in 2009 the excises for cigarettes and alcohol to the level it was supposed to reach by 2010 in accordance with the calendar agreed by Romania with the European Commission.

 

According to the Tax Code, the total excise for one thousand cigarettes, valid as of July 1, 2008, is EUR50. Its value was supposed to grow to EUR61.2 on July 1, 2009 and to EUR74 on July 1, 2010. The excise also includes the sin tax, which is EUR10.

 

On the other hand, cigarette producers Japan Tobacco International (JTI) and British American Tobacco (BAT) Romania said that the increase of tobacco excise duty to the 2010 level in the following period would trigger a 50% price increase and the boost of smuggling.