Key Points:
- Excise duty on cigarettes rises from €107.57 to €113 per 1,000 sticks.
- Heated tobacco tax increases to €214.74 per kilogram (+€10).
- E-liquid excise increases from €0.23 to €0.25 per milliliter, regardless of nicotine content.
- Cigars and cigarillos will be taxed €212.70 per 1,000 units.
- The reform is expected to bring €130 million in extra budget revenue plus €26 million VAT.
2Firsts, Nov. 6, 2025 — Bulgaria will raise excise taxes on all tobacco and nicotine products starting at the beginning of 2026. The adjustment covers cigarettes, cigars, heated tobacco sticks, and e-cigarette liquids and was approved under the 2026 state budget. The increase will be phased in over four years.
For the past decade, Bulgaria maintained one of the lowest tobacco excise rates in the European Union, aiming to keep consumer prices low. As a result, the country ranks last in the EU in terms of tobacco taxation, including for newer nicotine products.
Starting January 1, 2026, the excise duty on cigarettes will rise from €107.57 to €113 per 1,000 sticks. For a standard 20-stick pack, the tax will increase from €2.14 to €2.27. With 20% VAT included, the retail price is expected to rise by about €0.15 (around 0.30 lev), assuming no extra markup by manufacturers or retailers.
Cigar and cigarillo excise will increase from €202.47 to €212.70 per 1,000 units. The excise on smoking tobacco will rise from €113 to €121.96 per kilogram.
Heated tobacco products will also see an increase — from €204.74 to €214.74 per kilogram, adding roughly €0.07–0.08 to a 20-stick pack. The same rate applies to non-nicotine sticks used in heating devices.
The excise tax on e-cigarette liquids will rise from €0.23 to €0.25 per milliliter, whether nicotine-containing or not. A 2 ml vape will cost about €0.05 more, while a 20 ml bottle will increase by around €0.50.
In early 2026, products with old excise bands will remain on the market and can be sold at previous prices until stocks are exhausted.
According to the Ministry of Finance, the new rates will generate an estimated €130 million in additional budget revenue in 2026, plus roughly €26 million in VAT, as the latter is calculated on the total retail price, including excise.
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