Romanian Govt Plans To Rush Tobacco, Alcohol Excises To Hike Budget Revenues – Fin Min

“These things will happen once the Fiscal Code is amended, which we committed to carry out in the first part of 2009, namely in the first quarter. The amendments have to be made transparently by the Finance Ministry. As far as the measures we’re taking for the adjustment of revenues and expenses are concerned, we’re considering speeding up tobacco and alcohol excise,” Pogea said.

Cigarette maker Japan Tobacco International (JTI) and British American Tobacco (BAT) said an early increase of the excise would spell 50% increases in cigarette prices and would put contraband in control of 30% of the market.

The excise for tobacco would be increased in the near future to the level it was supposed to reach by 2010 in accordance with the calendar agreed by Romania with the European Commission, government sources told MEDIAFAX.

According to the Fiscal Code, the total excise for one thousand cigarettes, valid on July 1, 2008, was 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 vice tax, which is EUR10.

According to Gilda Lazar, corporate affairs manager within JTI Romania, the excise increase calendar for 2010, negotiated with the EU, has already been rushed by one year, through the introduction of the vice tax