Bulgaria increased excise duties on cigarettes and other tobacco products as its 2026 State Budget took effect Aug. 1. The cigarette excise rate rose from €113.51 to €120 per 1,000 cigarettes, increasing the pre-VAT price of a pack by about €0.13. The government has also scheduled further increases to €126 per 1,000 cigarettes on March 1, 2027, and €132 per 1,000 cigarettes on Jan. 1, 2028. Excise duties on smoking tobacco increased from €121.69 to €130 per kg, while the rate on heated tobacco products rose from €214 to €225 per kg.
According to Bulgaria’s Ministry of Finance, the accelerated excise increases are intended to boost government revenue and align with ongoing European Union discussions on higher minimum tobacco tax rates. The ministry estimates the higher excise duties and related VAT collections will generate an additional €155.9 million in revenue during 2026.
