Cigarette manufacturers warn that the new excise duty will increase the level of smuggling and the state will lose more money than in 2014.

The state will lower the excise duty to RON 314.86 (EUR 70.7) per 1,000 cigarettes between April 1, 2015 and March 31, 2016, according to an order of the Public Finance Minister.

However, producers say that this is not a real decrease, as the state established the excise duty last year at an artificial exchange rate of RON 4.7/ EUR, reports local Economica.net. The change will also increase smuggling, they say.

This year, the excise duty in euro has been converted to the Romanian currency lei at last year’s rate. So in April, the excise will reach the level targeted for 2018, said Gilda Lazar, director of Corporate Affairs & Communications with JTI Romania.

editor@romania-insider.com