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Tag: Bulgaria

  • Bulgarian Cigarette Prices Set to Rise for Second Time in 2025 

    Bulgarian Cigarette Prices Set to Rise for Second Time in 2025 

    Starting on May 1, the price of cigarettes in Bulgaria will rise by 40 to 50 stotinki (22 to 28 cents) per pack. This increase follows the latest adjustments to excise duties on tobacco products, which were approved as part of the 2025 budget.

    The new excise duty rates mark the second price hike this year, following a similar increase earlier when excise rates were raised by nearly 6%. This earlier rise was part of a planned, gradual increase that had been set in place since late 2022, when a four-year schedule was introduced. However, the government accelerated the schedule, deciding that the 2026 rates would be applied a year earlier.

    The Bulgarian Tobacco Industry Association clarified that there was no truth to recent rumors about a price surge of 2.50 leva ($1.38) per pack starting in April as several groups warned that the new excise duty directive would lead to a significant price hike. The Bulgarian Tobacco Industry Association refuted these claims, stating that the proposed changes to the excise duty directive, which would have raised the minimum rate to 180 euros per 1,000 cigarettes, had not been implemented. They noted, however, that the European Commission is expected to increase the minimum tobacco product excise duties more substantially in the coming years.

    According to the Ministry of Finance, the current excise structure will see a phased increase. As of January 1, 2025, the minimum excise duty for every 1,000 cigarettes was raised to 202 leva ($111). This will rise to 210 leva ($115.50) per 1,000 cigarettes starting in May, with a further increase of 12 leva each year until 2029. Similar increases are expected for other tobacco products and those containing tobacco substitutes.

  • Belgium’s Cigarette Black Market Soars

    Belgium’s Cigarette Black Market Soars

    Cimabel, the cigarette manufacturers’ federation for Belgium and Luxembourg, said that 36.5% of consumed cigarettes in Belgium dodged taxation in 2024, a staggering increase from the 20% in 2023. While only 1% of the cigarettes are counterfeit, Cimabel blames “excessive” tax hikes imposed by the previous federal government on legal products are allowing organized crime syndicates to smuggle in illicit product from Bulgaria to sell significantly cheaper.

    Already with a reputation as a smuggling hub for arms and drugs, Cimabel warns that Belgium authorities are now tasked with getting on the global bandwagon to reduce cigarette smoking without opening the door for criminals.

    “The state is hemorrhaging revenue while criminals rake in millions,” Cimabel said. “The federation is now calling for a rethink on excise policies, urging the government to strike a balance between public health and stopping illicit traders from lighting up their profits.” 

  • 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.

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  • 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.