Source: Tanjug | Wednesday, 02.12.2020.| 12:50
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Excise Tax on Cigarettes to Reach European Levels by 2025

(Photo: Voronina Svetlana/ )
According to the proposed amendments to the Law on Excise Taxes, this type of tax is to increase when it comes to cigarettes, non-combustible tobacco and the liquid for the filling of electronic cigarettes between 2021 and 2025, so as to harmonize with the EU and secure a stable budget inflow.

The amendments to the law, which are undergoing the parliamentary procedure, envisage for the excise tax on cigarettes to go from the current EUR 70 to the EU minimum of EUR 90 by 2025.

As said, the excise tax per pack of cigarettes in Serbia should reach the amount of at least EUR 1.8 by 2025.

The medium-term plan proposes for the specific component of the excise tax to increase each six months by RSD 1.5 per pack.

Amendments to the manner of calculation of non-combustible tobacco, which is increasingly used as a substitute for cigarettes, are also proposed, so as to reduce the difference between the excise tax on that product and the excise tax on cigarettes.

In Serbia, the excise tax on non-combustible tobacco is 6.76% of the retail price, and in the EU it ranges from 11.08% in the Netherlands to 51.04% in France, the explanation says.

It is said that the increase of 50% in the upcoming year is acceptable, because it would bring the excise tax up to the level of around 9.7% of the retail price.

It is also proposed for the excise tax on the liquid for the filling of electronic cigarettes to be increased by a dinar per milliliter each year in the medium-term period until 2025.
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