New proposal: the excise duty on smokeless cigarettes will increase to 40 or 45%

The company's excise duty smokeless cigarettes will be increased this year by 40% or 45%. Such a decision was discussed at the ruling coalition council on Tuesday night. The idea is to introduce a text to regulate the rate between the first and the second reading of the law

Currently, it represents 26% of the excise duty on conventional cigarettes. According to an acquaintance, Mada Stoyanova, chairman of the Budget Committee, insisted on the increase to equalize smokeless tobacco and ordinary cigarettes, but after last week's misconduct coalition, this option has was rejected as "

However, the commitment made by the governors is in 2019 that the excise duty on [IQOS] equates the excise duty on other tobacco products.

Bulgaria will therefore find itself at one of the highest levels of the tax scale.Of the 23 countries in the EU that offer QOS tobacco I the products are taxed at 67% in France (where the rate is highest), with 49-50% of the excise duty for ordinary products cigarettes in Spain and Italy 43% and 45% %, respectively, are the rates in Sweden and Portugal.The other countries are below the rate of 40%, including Germany, Great-Br Switzerland, Hungary, etc.

According to the initial proposal submitted by GERB, the excise duties on smokeless items must match those of conventional cigarettes. The correction provoked a scandal within the ruling coalition, prompting Prime Minister Boyko Borisov to order the suspension of the project. A day later, however, the majority members announced that they would rework it but not withdraw it.

Meanwhile, the Philip Morris Tobacco Company, which has so far registered and sold smokeless products on the Bulgarian market under the I QOS brand, proposed to introduce a fair increase in excise duties for all tobacco products sold on the market. The position is set out in a letter from the director of the Bulgarian office of Georgios Margonis to the Committee on Budget and Economy in Parliament asking for a revision of the idea of ​​increasing the excise duty I QOS

National Assembly on July 4, the day that Borisov ordered GERB to withdraw the bill

Philip Morris states that only a small increase in the specific component of the 39 Excise on cigarettes could generate the necessary revenue for the budget that the government pounds per square inch in the new excise tax on cigarettes t.nar.bezdimnite. The company is also proposing another option – a proportional increase in excise duties on all tobacco products, which will maintain market equity

"The expected quadrupling of excise duties on heating products will have significant consequences for consumers, "said Philip Morris.

According to the company, the tax base should take the weight of tobacco, because it is the main element. Philip Morris argues that any other tax base would violate the equity of different types of STIs and would lead to tax evasion

On the basis of this tax framework for the price of one kilogram tobacco on the market, the product was launched I QOS and the company's investment was provided on this basis. Sales of smokeless cigarettes were still insignificant compared to all other tobacco products

The letter recalls that, in a January interim report, it is recommended that smokeless cigarettes be taxed at the same level as smoked tobacco. smoking. "The application of excise duty on cigarettes on STIs will be unprecedented and will result in a total disparity in the taxation of these products in most EU member states," said Philip Morris.

In addition, they warn that "Excise rates on cigarettes, cigars, cigarillos, smoking tobacco or other products of combustion should always be much higher than the excise rates." [19659002] "The excise rates of cigarettes, cigars, cigarillos, smoking tobacco or other products of combustion should still be STI," wrote in the letter.

The company says it wants to keep meetings with members of both committees as soon as possible in order to reach a compromise favorable to all parties