Government increases tobacco tax. Heated cigarettes to have their own tax

Government increases tobacco tax. Heated cigarettes to have their own tax

The government wants to increase tobacco taxes and to levy a specific tax on heated cigarettes, according to the 2020 State Budget draft to which Lusa had access.

The document introduces an amendment to the Excise Duties Code to create a tax on heated cigarettes, which until now were subject to the same tax as rolling tobacco, other smoking tobacco products, snuff, and chewing tobacco.

Tax on heated tobacco consists of two elements - one based on weight, worth €0.0837 per gram, and an 'ad valorem' element related to the application of a 15% tax on retail prices. According to the amendment, "the tax on heated cigarettes resulting from the application of the preceding paragraph shall not be worth less than €0.180 per gram."

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