Bulgaria's Parliament to Discuss Increase in Excise Duty on Cigarettes

Bulgaria's parliamentary committee on budget and finance will discuss Thursday a proposed increase in the excise duty on cigarettes.

The measure is envisaged in a set of amendments to the Excise Duties and Tax Warehouses Act, according to reports of the Bulgarian National Radio.

As of 2016, the excise duty on cigarettes will start increasing, pushing up cigarette prices.

Under the proposal of the Finance Ministry, the specific part of the excise duty on cigarettes is to decrease, while the proportional component is to increase gradually over the next three years.

Experts say that the changes will allow cheaper brands of cigarettes to become more expensive more slowly than expensive brands.

The specific part of the excise duty on cigarettes will be set at BGN 70 per 1000 cigarettes, while the proportional component will increase to 32% of the selling price as of 2016.

In 2017 and in 2018 there will be increases by 2 percentage points per year. meaning that the most common brands will add BGN 0.20 - 0.30 per year. At the same time, a larger price increase may affect expensive cigarette brands.

Under a new provision, people will be allowed to carry no more than 40 roll-your-own cigarettes.

By the deadline of January 1, 2018, Bulgaria has to reach the EU minimum excise duty rates.

The maximum positive impact on the budget in the period 2016-2018 stands at BGN 119.323 M, if consumption remains unchanged from now, according to calculations of Bulgaria's government, as cited by dnevnik.bg.