Tag: Romania

  • Industry Concerns Over Romanian Tax Plans

    Industry Concerns Over Romanian Tax Plans

    Image: Tobacco Reporter archive

    Romania’s finance ministry plans to increase excise duties on tobacco and nicotine products this year in addition to the excise calendar that has already been approved, causing tobacco firms concern, according to The Romania Insider.

    “The moderate five-year timetable for increasing excise duty adopted less than 12 months ago should have provided the fiscal predictability needed to combat illicit trafficking,” said Jorge Araya, director of the southeast Europe area for BAT. “It should not be forgotten that illicit trafficking also means decreasing revenues to the state budget, financing criminal networks and uncontrolled access to products that do not meet quality or hygiene standards.”

    Excise duty was previously increased in April of this year. Excise duties and cigarette prices in Romania are the highest in the European Union in relation to purchasing power.

    Araya argues that the tax increases make smuggling very profitable because cigarettes can be bought in neighboring countries at around half the price of those in Romania.

  • Romania to Hike ‘Sin Taxes’

    Romania to Hike ‘Sin Taxes’

    Photo: Maksym Kapliuk

    Romania’s government will increase tobacco and alcohol excise duties as of Aug. 1, aiming to boost public revenue, reports SeeNews. The measure will be followed by a 10 percent tax hike on sugary drinks effective Jan. 1, 2023

    The excise duty on tobacco and alcohol has been unchanged since 2015.

    The European Union requires member states to impose an excise duty of at least 60 percent of the weighted average retail selling price of cigarettes. 

    The Romanian government expects the measures to boost budget revenues by RON1.2 billion ($242 million) this year and RON10.57 billion in 2023.