Tag: Bulgaria

  • Bulgaria to Raise Excise Taxes

    Bulgaria to Raise Excise Taxes

    Photo: Rodworks

    Bulgaria will increase excise taxes on tobacco products in 2025, reports Novinite.

    The finance ministry has proposed to fast-track the increases originally set for 2025 and 2026. Specifically, the excise tax on cigarettes will rise from LEV194 ($104.09) for 1,000 cigarettes to LEV211, which will likely increase the cost of a pack by LEV0.7 to LEV0.8.

    The excise duty on smoking tobacco will also increase, rising from LEV184 per kilogram to LEV0222, while the tax on heated tobacco will jump from LEV331 to LEV400 per kilogram. The excise tax will also rise for other smoking products, including those with or without nicotine, such as herbal mixtures. The ministry expects that these accelerated increases will generate over LEV230 leva in revenue in 2025.

    Despite these planned increases, the Ministry of Finance asserts that the rise in excise duties will not hinder the country’s goal of maintaining 2 percent inflation as part of its preparations for joining the eurozone.

    .

  • Illegal Factory Raided in Bulgaria

    Illegal Factory Raided in Bulgaria

    Photo: Interior Ministry

    Bulgarian authorities uncovered a large illegal cigarette factory near Sofia, reports the Bulgarian News Agency.

     The facility, which produced fake versions of well-known cigarette brands, was capable of producing some 2,400-2,800 cigarettes per minute. The police also found some 20 tons of processed tobacco, designated to be packaged and branded as cigarettes.

    Pre-trial proceedings have been initiated and a witness has been questioned. The operation was conducted under the Customs Agency’s direct supervision.

  • Strobykin to Lead PMI Bulgaria

    Strobykin to Lead PMI Bulgaria

    An IQOS store in Sofia | Photo: markobe

    Philip Morris International has appointed Denys Strobykin as the new general manager of its Bulgarian unit, reports SeeNews. He succeeds Demian Pintos, who will become managing director of the south cluster in PMI’s Americas region, overseeing operations in Argentina, Uruguay, Bolivia, Chile and Paraguay.

    Strobykin starting in PMI’s finance department in Ukraine two decades ago. Over the years, he has held sales and marketing roles in Moldova, Poland and Romania, most recently serving as director of marketing and digital at Philip Morris Romania.

    Strobykin aims to strengthen the company’s market presence and further develop its commitment to guiding adult smokers to smoke-free alternatives, according to a PMI press release.

    “We have already made significant progress in the country—more than 350,000 adult smokers have already switched to the main smoke-free alternative in our ever-expanding portfolio—IQOS,” Strobykin was quoted as saying.

    “We have been scaling our operations responsibly, by addressing diverse consumer needs. We have been also advancing a more sustainable business model by implementing recycling programs for our devices as part of our efforts to reduce the environmental impact of our products.”

  • Europe OKs Aid to Bulgarian Growers

    Europe OKs Aid to Bulgarian Growers

    Photo: Tobacco Reporter archive

    The European Commission has approved a BGN170 million ($94.1 million) Bulgarian package to aid tobacco farmers and other agricultural producers impacted by the war in Ukraine, reports SeeNews.

    The aid, disbursed as direct grants capped at €280,000 ($302.923) per beneficiary, will cover part of the losses of not only tobacco growers but also of fruit producers, vegetable growers and beekeepers, among others.

    Developed under the Temporary Crisis and Transition Framework, the grants apply for the framework’s entire duration, from March 2022 to the end of June 2024, taking into account the total aid received by each agricultural producer during this term.

  • Alpha Partners Bulgaria Can Acquire KT Intl.

    Alpha Partners Bulgaria Can Acquire KT Intl.

    Image: Wasan

    Alpha Partners Bulgaria has been cleared to acquire KT International, a Bulgarian tobacco grower and cigarette producer, reports SeeNews.

    The acquisition will not cause notable horizontal or vertical overlaps that could curb competition or lead to a dominant position in relevant markets, according to the Commission on Protection of Competition.

    The value of the acquisition was not disclosed. KT International’s registered capital amounts to $2.8 million.

    KT International is the only tobacco products manufacturer that sells on the Bulgarian market. Competitors export all of their products. Between May 2021 and May 2023, KT International held a 5 percent to 10 percent share in the Bulgarian cigarette distribution market.

  • Bulgaria to Ban Flavored Products

    Bulgaria to Ban Flavored Products

    Image: Delyan

    Bulgaria will ban products with flavors other than tobacco effective Jan. 1, 2024, reports Novinite.com

    The ban is in response to the European Commission’s directive.

    The amendment will also require that all packaging for heated-tobacco products display a warning highlighting associated risks of use. The Ministry of Economy and Industry will now be tasked with prohibiting tobacco products containing additives that significantly increase toxicity, with addictive properties or that pose risks of cancer, mutations or reproductive toxicity.

    Enactment of the changes is pending official publication in the State Gazette.

  • Bulgaria to Support Growers Diversification

    Bulgaria to Support Growers Diversification

    Photo: Tobacco Reporter archives

    Bulgaria will provide BGN70.5 million ($38.4 million) to help its tobacco growers diversity into alternative livelihoods, reports SeeNews, citing the State Fund Agriculture. 

    The financing will be awarded to producers who have grown tobacco during for least one year in the reference period 2007-2009, the fund said in a press release published on March 10.

    Tobacco producers who continue to practice agriculture are entitled to receive subsidies under the program. Owners of animal farms or beekeepers are also eligible. 

    Bulgaria has provided aid to a number of farmers since 2015. The amount of the grants are based on the volume of the purchased tobacco and its plant variety. 

    Earlier last week, Bulgaria’s government said it approved the disbursement of some BGN213 million in aid for farmers to help offset the rising costs of inputs.

  • Bulgaria: Illegal Cigarettes Seized

    Bulgaria: Illegal Cigarettes Seized

    Photo: Tobacco Reporter archive

    Bulgarian law enforcement officers seized more than 13 million smuggled cigarettes in the port city of Burgas, according to Xinhua Net. The cigarettes were destined for Hungary.

    The illegal products were found in a semi-trailer that arrived by ferry from Georgia, according to the National Customs Agency (NCA) and Bulgaria’s prosecutor’s office.

    The total value of the seized cigarettes is about $3 million.

    Due to its location, Bulgaria is a favorite destination for traffickers, with 16.1 million illegal cigarettes seized by the NCA in 2020.

  • Fake cigarettes seized

    Fake cigarettes seized

    Bulgarian customs agents have seized 5.9 tons of counterfeit cigarettes at a border crossing with Romania, according to a Xinhua News Agency story.

    Officials in Sofia were quoted as saying yesterday that the cigarettes were seized at the Danube Bridge checkpoint near Vidin, Bulgaria.

    The cigarette packs, which were said to have carried the brand logo of a popular [but unnamed] English cigarette brand, were found in a truck traveling to western Europe, the National Customs Agency (NCA) said in a press note. The trademark owner had been notified.

    The shipment was declared only as cardboard, the NCA said.

    Bulgaria is a favorite transit country for those involved in illegal trade.

    Last year, the NCA seized 51.2 million cigarettes and 5.4 tons of tobacco, along with other non-tobacco-related goods.

  • China to buy Bulgarian leaf

    China to buy Bulgarian leaf

    Speaking at a press conference in Sofia, China’s Prime Minister Li Keqiang promised his Bulgarian counterpart, Boyko Borisov, that China would buy up to 10 million kg of leaf tobacco from Bulgarian farmers each year, according to a Novinite story relayed by the TMA.
    The comments followed the conclusion of the 16+1 forum, an initiative by China aimed at expanding co-operation with 11 EU member states and 5 Balkan countries in the fields of investments, transport, finance, science, education, and culture.
    Bulgaria produces about 25 million kg of tobacco each year, about 15-18 million kg of which comprises oriental tobacco.
    China has for many years been expected to enter the market for classical oriental tobacco, an entry that, at this stage, could have a significant effect on the market.
    Borisov was quoted as saying that Li had suggested that Bulgarian farmers should start growing ‘Chinese varieties of tobacco’ – perhaps Chinese styles of tobacco.