Tag: serbia

  • Philip Morris to Invest in Serbia

    Philip Morris to Invest in Serbia

    Image: epic

    Philip Morris International plans to invest €100 million ($111.4 million) in Serbia, reports SeeNews, citing the country’s president Aleksandar Vucic.

    “Such foreign investments are decisive for the development of the economy and business and further strengthen the position of our country as a major partner in innovation and modern technologies,” Vucic said Sept. 23 following a meeting with PMI CEO Jacek Olczak in New York.

    PMI operates in Serbia through two subsidiaries, Philip Morris Operations and Philip Morris Services.

    In 2003, PMI acquired Serbia’s largest tobacco factory, DIN Fabrika Duvana in Nis. To date the multinational has since invested more than $800 million in its Serbian operations.

  • BAT Expanding in Serbia

    BAT Expanding in Serbia

    Photo: www.akolosov.art

    BAT is expanding in Serbia, reports SeeNews.

    “We are very pleased and very happy with the business environment in Serbia,” said Jorge Araya, head of BAT’s South-Eastern Europe division.

    According to Araya, the company plans to expand its Serbian manufacturing capacity by 20 percent and export approximately half of its domestic production.

    In 2003, BAT bought Duvanska Industrija Vranje. By late 2020, it had invested €270 million ($290 million) in the factory.

    BAT’s competitors in Serbia include the local units of Philip Morris International and Japan Tobacco International.

    Araya said BAT is the only tobacco company competing locally in all new category products. Its portfolio covers not only heated-tobacco but also herbal products, e-cigarettes and nicotine pouches, he said.

  • Serbia Raises Excise on Tobacco

    Serbia Raises Excise on Tobacco

    Image: Henning Marquardt

    Serbia has raised excise taxes on cigarettes, fuel, alcohol and coffee by 8 percent, effective Oct. 1, reports Euractiv.

    According to Bojan Stanic, deputy director of the Strategic Analysis Department at the Serbian Chamber of Commerce, the increase does not mean the products will become 8 percent more expensive; it comes down to the price structure.

    “Excise taxes are increasing by 8 percent,” said Stanic. “When you look at the price structure of fuel, one part relates to the purchase price of fuel, and then excise tax is added, and this part of the excise tax is increased by 8 percent. This does not necessarily mean fuel at the pumps will become much more expensive.”

    “The budget of Serbia is constrained, and it is under pressure due to rising interest rates for repaying the state’s debt,” said Stanic regarding the decision. “On the other hand, there is pressure that mostly affects the poor, and of course, it is necessary to provide increases in pensions and one-time transfers to the population in terms of assistance. All of this is applied to relieve the poorest part of the population. Additionally, it was necessary to find additional revenues. Someone calculated that increasing excise taxes was the way to go.”

    “However, when we talk about other products like coffee, alcohol, and tobacco, which are also subject to excise taxes, these are not essential goods; people can live without them. Therefore, it is believed that there will be less resistance if taxes on these products are increased,” he added.

  • Serbia to Raise Cigarette Excise

    Serbia to Raise Cigarette Excise

    Image: Tobacco Reporter archive

    Effective July 1, Serbia will raise the excise duty on cigarettes, reports SeeNews.

    The proportional component of the excise duty will remain 33 percent, according to the government, but the specific component will increase to RSD84.25 ($0.78) per pack from RSD82.75 per pack.

    The retail price will increase by RSD10 per pack of cigarettes.

    The specific component of the excise duty will increase by RSD1.5 every January and July until 2025, according to Serbia’s excise calendar that was adopted at the end of 2020. The increases are to keep Serbia in compliance with European Union standards.

  • Serbia Introduces Fines for Underage Vape Sales

    Serbia Introduces Fines for Underage Vape Sales

    Image: Miljan Živković | Adobe Stock

    Merchants caught selling e-cigarettes or other tobacco products to minors in Serbia risk a fine of RSD50,000 ($469), following a recent amendment to the Law on Consumer Protection, reports EurActive.

    The revision fills a void in an area that was previously unregulated. According to Serbia’s Internal and Foreign Trade Ministry, the law did not define e-cigarettes or ban their underage sales.

    The ministry believes electronic nicotine-delivery systems present a significant health problem, encouraging nicotine addiction and exposing users to carcinogenic substances. They also increase the likelihood that individuals will start using other tobacco products, such as cigarettes, according to the ministry.

    “The conclusion of all conducted research is that by consuming an electronic cigarette, with or without nicotine filling, not only water vapor is sent into the air but also a number of chemicals. The harmful effects of these products reflect on the health of individuals and intensively spread to all components of the environment,” it stated.

    The changed law prohibits the sale, service and gifting of electronic cigarettes with or without nicotine as well as other products intended for smoking, snorting, sucking, chewing or inhaling vapor to persons under 18. It also bans persons under 18 from selling such products.

  • Serbia: Cigarette Prices Increasing

    Serbia: Cigarette Prices Increasing

    Image: adaptice | Adobe Stock

    The price of all types of cigarettes in Serbia will increase by RSD10 ($0.09) per pack, effective Jan. 1, according to Serbianmonitor.com.

    Cigarette prices have increased twice a year since the excise duty schedule was adopted in 2020. Prices will continue to increase until 2025 with the goal to align Serbia with EU standards.

    Excise duty for e-liquid is increasing by RSD1 per milliliter, and the price of nonburning tobacco will also increase.