excise - Tobacco Reporter https://tobaccoreporter.com Tue, 08 Jul 2025 21:17:33 +0000 en-US hourly 1 https://wordpress.org/?v=6.8.2 Serbia Eliminates Favorable Tax Treatment for Alternative Products https://tobaccoreporter.com/2025/07/08/serbia-eliminates-favorable-tax-treatment-for-alternative-products/?utm_source=rss&utm_medium=rss&utm_campaign=serbia-eliminates-favorable-tax-treatment-for-alternative-products Tue, 08 Jul 2025 21:17:32 +0000 https://tobaccoreporter.com/?p=164578 Alternative tobacco products such as heated tobacco, hookah flavors, and herbal smoking products will now be taxed at 100% of the minimum cigarette excise duty.

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Serbia’s Ministry of Finance announced sweeping changes to excise tax regulations, set to take effect in January 2026. Under the new rulebook, alternative tobacco products such as heated tobacco, hookah flavors, and herbal smoking products will now be taxed at 100% of the minimum cigarette excise duty, up from the previous 40%.

The move aims to eliminate favorable tax treatment for alternatives and boost state revenue, as consumers increasingly shift away from traditional cigarettes. The list of excisable products has also been expanded to include nicotine pouches, biofuels, bioliquids, and natural gas.

In addition, revamped tax return forms will now require twice-monthly filings and include new reporting codes and fields to improve accuracy and digital tracking. Officials say the overhaul will strengthen tax compliance and align with broader health and fiscal objectives.

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Australia Stands with Highest Tobacco Taxes Despite Black Market Concerns  https://tobaccoreporter.com/2025/06/06/australia-stands-with-highest-tobacco-taxes-despite-black-market-concerns/?utm_source=rss&utm_medium=rss&utm_campaign=australia-stands-with-highest-tobacco-taxes-despite-black-market-concerns Fri, 06 Jun 2025 00:33:47 +0000 https://tobaccoreporter.com/?p=164192 In the last six years, the excise taxes increased from $10 to $18 per pack, driving the average cost of a pack of cigarettes to $26.

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A tobacco tax that’s helped drive Australian cigarette prices to world-leading highs won’t be lowered despite suggestions it has aided a rampant black market. Treasurer Jim Chalmers ruled out changing the tobacco excise Wednesday (June 4), dismissing New South Wales’ (NSW) Premier Chris Minns’ call that lower prices could help curb surging levels of illegal tobacco in the community.

Federal excise taxes are A$1.40 (91 cents) per cigarette, driving the average cost of a pack of 20 to A$40 ($26). In the last six years, the excise taxes increased from A$16 to A$28 ($10.40 to $18.20) per pack, but the revenue collected by the government has still gone down as smokers turn to a flourishing black market, according to Minns. Tobacco tax revenue peaked at A$16.3 billion ($10.1 billion) in 2020 but has dipped to a projected A$7.4 billion ($4.8 billion) this year.

Minns said police have better things to do than tobacco enforcement, and the “commonsense option” would be for the federal government to acknowledge the excise was not working. NSW Treasurer Daniel Mookhey insisted he would raise the issue with his federal counterpart despite the flat rejection.

“We can’t ignore the fact there’s an interaction between the federal exercise and the emergence of illegal tobacco,” Mookhey said.

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Illicit Cigarettes Costing Pakistan $1.1B Annually https://tobaccoreporter.com/2025/05/01/illicit-cigarettes-costing-pakistan-1-1b-annually/?utm_source=rss&utm_medium=rss&utm_campaign=illicit-cigarettes-costing-pakistan-1-1b-annually Thu, 01 May 2025 20:12:22 +0000 https://tobaccoreporter.com/?p=163809 There needs to be a serious political will to act.

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Tax evasion, weak enforcement of the track-and-trace system, and regulatory loopholes are crippling both public revenue and health safeguards, costing Pakistan over Rs300 billion ($1.1 billion) annually to the illicit cigarette trade, experts said. Speaking on “The Express Tribune Podcast,” in collaboration with #BehtareenPakistan, CEO of the Institute for Public Opinion Research (IPOR), Tariq Junaid, said, “This is not just a health issue—it’s an economic crisis. When more than 40% of the cigarette market goes untaxed, the state loses the ability to fund vital services. Smugglers are filling the gap while legitimate businesses suffer.”

Panelists on the podcast said illegal cigarette manufacturers are exploiting the system by avoiding the Federal Excise Duty and producing below the legal price threshold. These untaxed products are then sold cheaply, undercutting lawful manufacturers and contributing to a shadow economy that thrives on regulatory inaction. The podcast also explored the broader impacts of the illicit trade. Experts emphasized that this is not simply a revenue issue, it also has dire implications for public health. Consumers of illegal cigarettes are often exposed to unregulated, potentially more harmful products.

In response to these challenges, the panel advocated for the urgent implementation of a fully functional track-and-trace system to digitally monitor cigarette production and distribution. They also called for tougher penalties for violators and more transparent oversight by tax authorities.

“There needs to be a serious political will to act,” Junaid said. “The solution is not just about enforcement—it’s about protecting Pakistan’s economy from systemic exploitation.”

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Bulgarian Cigarette Prices Set to Rise for Second Time in 2025  https://tobaccoreporter.com/2025/03/26/bulgarian-cigarette-prices-set-to-rise-for-second-time-in-2025/?utm_source=rss&utm_medium=rss&utm_campaign=bulgarian-cigarette-prices-set-to-rise-for-second-time-in-2025 Wed, 26 Mar 2025 22:25:02 +0000 https://tobaccoreporter.com/?p=163420 Starting in May, the price of cigarettes in Bulgaria will rise 22 to 28 cents per pack.

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Starting on May 1, the price of cigarettes in Bulgaria will rise by 40 to 50 stotinki (22 to 28 cents) per pack. This increase follows the latest adjustments to excise duties on tobacco products, which were approved as part of the 2025 budget.

The new excise duty rates mark the second price hike this year, following a similar increase earlier when excise rates were raised by nearly 6%. This earlier rise was part of a planned, gradual increase that had been set in place since late 2022, when a four-year schedule was introduced. However, the government accelerated the schedule, deciding that the 2026 rates would be applied a year earlier.

The Bulgarian Tobacco Industry Association clarified that there was no truth to recent rumors about a price surge of 2.50 leva ($1.38) per pack starting in April as several groups warned that the new excise duty directive would lead to a significant price hike. The Bulgarian Tobacco Industry Association refuted these claims, stating that the proposed changes to the excise duty directive, which would have raised the minimum rate to 180 euros per 1,000 cigarettes, had not been implemented. They noted, however, that the European Commission is expected to increase the minimum tobacco product excise duties more substantially in the coming years.

According to the Ministry of Finance, the current excise structure will see a phased increase. As of January 1, 2025, the minimum excise duty for every 1,000 cigarettes was raised to 202 leva ($111). This will rise to 210 leva ($115.50) per 1,000 cigarettes starting in May, with a further increase of 12 leva each year until 2029. Similar increases are expected for other tobacco products and those containing tobacco substitutes.

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