Wednesday13 November 2024
smiua.net

Moldova has implemented varying excise tax rates on cigarettes and tobacco sticks.

The Moldovan Parliament recently voted on tax changes for 2025, which include the introduction of different tax rates for regular cigarettes and tobacco sticks used in heating devices.
Молдова установила различные акцизные ставки на сигареты и табачные стики.

The Moldovan Parliament recently voted on tax changes for 2025, which include implementing different tax rates for regular cigarettes and tobacco sticks used in heating devices.

This was reported by RBK-Ukraine, referencing Infotag.

According to the Ministry of Finance of Moldova, this decision aims to harmonize taxation practices with those of EU countries.

The tax changes will result in a 15% increase in excise duty on cartridges and tanks for electronic cigarettes (from 2690.87 lei per liter to 3094.50 lei per liter). At the same time, the excise on tobacco sticks for heating devices will rise by 5% in 2025 (from 1318.62 lei to 1384.55 lei per 1000 units), while the minimum excise on cigarettes will increase by 10% (from 13 lei per 1000 units).

Thus, in 2025, the difference between the excise rates on cigarettes and tobacco sticks for heating devices will be 5%. It is worth noting that a further increase in these rates is planned for 2026 at the same pace, which will create a differentiation of 10% between them.

The changes are driven by the need to align tax policy regarding excise duties on tobacco products and related goods with the practices of the European Union.

As previously mentioned, the Verkhovna Rada of Ukraine is preparing to convert tobacco excise rates from hryvnias to euros under bill No. 11090, as well as to change the approach to taxation on regular cigarettes and tobacco products for electric heating (TVENs). The excise on cigarettes will increase gradually, aiming for 90 euros by 2028, while for TVENs, it will be slightly lower at 72 euros.

This tax differentiation between cigarettes and TVENs is necessary to harmonize our legislation with that of the EU, where the difference in excise duties on regular cigarettes and TVENs averages 66%.

The government expects that the increase in excise duties on all tobacco products will generate an additional 28 billion hryvnias for the budget by 2029.