Tax Research

“Excise Taxation of Tobacco Products in Bulgaria – Review and Recommendations”

2013

After EU accession Bulgaria was faced with the challenge to harmonize its excise policy with regard to tobacco products and to reach the minimum level of excise duties on tobacco products, as laid down in the respective EU Directive, until the beginning of 2010. In 2007 prices of cigarettes in Bulgaria (weighted average price) were actually lower than the nominal requirement for minimum excise duty in the EU (64 euro per 1000 cigarettes), which illustrates the tough task that our country faced. More specifically, Bulgaria was set to increase excise duties, respectively prices substantially, without distorting the market and avoiding any negative effects for the budget.