Parliament approves higher excise tax on cigarettes

THE PRICE of cigarettes will increase in Slovakia next year after the Slovak parliament on September 17 approved an amendment raising the applicable excise tax rate.

Cigarettes will become more expensive because of an excise tax hike.Cigarettes will become more expensive because of an excise tax hike. (Source: SITA)

THE PRICE of cigarettes will increase in Slovakia next year after the Slovak parliament on September 17 approved an amendment raising the applicable excise tax rate.

It will mean that the tax on cigarettes will rise in February 2009 from Sk1.41 (€0.0468) per cigarette to Sk1.58 (€0.0525). This is the last excise tax rate hike implemented to bring Slovak rates into line with the minimum tax burden set by the European Union. The revision also increases the minimum excise tax rate per cigar from the previous Sk2.10 (€0.0697) to Sk2.45 (€0.0813), SITA wrote.

MPs also decided that ten-cigarette packs will be produced in Slovakia or imported only until January 31, 2010, and sold only until July 31, 2010.

The Finance Ministry expects the changes to generate additional revenues for the state budget of Sk4.5 billion (€149.4 million) in 2008.

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