Romania’s Tobacco Excise Revenue Up 31.5% In 2009

In 2008, the state budget revenue from tobacco excise stood at RON3.87 billion.

Revenues from tobacco excises will continue to increase in 2010 following a raise in excises as of January 1and a stronger euro, ANAF president Sorin Blejnar said.

As of January 1, the excise tax was raised from EUR64 per 1,000 cigarettes to EUR74/1,000 cigarettes. Also, the excise level in Romanian lei is computed based on the exchange rate announced by the European Central Bank on October 1, 2009, when euro was about 14% stronger against the leu than a year before.

In 2009, the excise tax was also raised twice, in April and September, by EUR7 per 1,000 cigarettes each time, from EUR50/1,000 cigarettes at the beginning of the year.

As regards cigarette smuggling, which has picked up on the backdrop of higher excise duties, Blejnar said tax authorities will ensure a more thorough surveillance of high risk locations and will order more frequent checkups.

„The only way the tobacco excise revenue would decrease this year is if a lot of people quit smoking. But I’m not worried because, that way, we’d win on the health budget side,” Blejnar concluded.