Tobacco firms concerned with Romania's plans to hike excise taxes further

Jorge Araya, Director of the South East Europe Area at BAT, expressed concerns about the Romanian Finance Ministry's intention to increase excise duty on tobacco and nicotine products in 2023, in addition to the calendar already approved.

"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. 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," he argued, according to Economica.net.

By promoting a second increase in excise duty this year, after the one in April, the Ministry of Finance ignores the fact that excise duties and cigarette prices in Romania are the highest in the EU in relation to purchasing power.

In all countries neighbouring Romania, cigarettes can be bought at about half the price, the representative of BAT group argues, implying that this makes smuggling very profitable.

(Photo source: Dreamstime.com)