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Tobacco industry

Cigarettes will be more and more expensive until the end of 2025

October 17, 2023, 15:52 p.m Z.S.
Photo: Milovan Milenkovic
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From October 23, the price of cigarettes from certain manufacturers will increase, and certain manufacturers will increase their prices by 10 dinars per pack. The new law foresees that the specific excise duty will be adjusted upwards twice a year until the end of 2025, so the state should have an income of 97,47 dinars by then.

As of October 1, the government has increased the excise duty on cigarettes by eight percent, which is why the price of certain manufacturers' cigarettes will rise from October 23.

As N1 reports, cigarettes manufactured by British American Tobacco, which include Lucky Strike, Dunhill, Rotmans, Drina, Pal Mal, will be 23 dinars more expensive per pack starting October 10.

Cigarettes produced by Mercata VT doo already went up in price on October 9, by 10 dinars per pack.

Smokers have already learned that excise taxes on tobacco products are changed twice a year, which leads to higher cigarette prices.

With the new increase in excise duty, the state takes 90,99 dinars per package, while it was 1 dinars until October 84,25.

By increasing prices against smokers

According to Article 14 of the proposal of the new Law, it is predicted that after January 1, 2024, the established practice of correcting the specific excise tax upwards twice a year will continue until the end of 2025. That correction in the new excise calendar will be 1,62 dinars upwards, so at the end of 2025, the state should put as much as 97,47 dinars into its coffers. 

What should be known is that the proportional excise duty of 33 percent remains unchanged.

Electronic cigarettes will not be cheaper either, because the liquid for filling them will also have an eight percent correction. This group also includes fans of non-burning tobacco and from January 1, 2024, also those who use nicotine pouches, which are being introduced as a new excise product.

Alignment with European Union standards aims for the state to earn at least 2025 euros per 70 cigarettes, or 90 euros per pack, by the end of 1000 instead of the current slightly more than 1,8. 

All of this is stated in the explanation of the Law, but also in the state's expectation that after the new excise policy, the increase in the price of cigarettes may lead to a decrease in tobacco users.

A new excise product is also being introduced, nicotine pouches, which will be taxed from January 2024.

ZS/N1/Blic

 

Read daily news, analysis, commentary and interviews at www.vreme.com

Tags:

tobacco industry Price increases excise taxes
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