Cigarette excise to increase in Romania from April 1

The excise duties on cigarettes will increase in Romania from April 1, 2014, from the current EUR 56.71 per 1,000 cigarettes, to EUR 59.77 per 1,000 cigarettes. This will lead to a 3.16 percent increase in the total excise duty, to EUR 84.37 per 1,000 cigarettes. The ad valorem excise duty will slightly drop from 19 percent to 18 percent, while the minimum excise duty for the period April 1, 2014 - March 31, 2015, will be of EUR 81.5 per 1,000 cigarettes, up from the current EUR 79. According to a study conducted by Novel Research, the cigarette black market in Romania registered in January this year the highest level in over two and a half years, of 15.7 percent. The tobacco industry ranks high on the list of main contributors to the Romanian state budget. In 2013, the cigarette manufacturers paid over EUR 2.6 billion to the state budget, representing excise duties, VAT, taxes and contributions. Irina Popescu, irina.popescu@romania-insider.com