According to reports from the Bulgarian National Broadcasting Station, an increase in the consumption tax on tobacco products will result in a gradual rise in prices from March 2022 until November 17th.
The price hike plan is set to be completed in January 2026. The decision was made after the Budget Committee of the Parliament approved it in the first reading.
According to unofficial estimates, the average price of a pack of cigarettes is expected to increase by approximately 20 lire (equivalent to approximately 0.76 yuan) . For other types of tobacco products, the price hike is expected to be even greater.
The bill text has been approved in the first reading, but representatives believe that changes need to be made before final passage. Dr. Gavraylova stated that under the current proposal, the consumption tax would increase by 15%, rather than 5%, resulting in a government revenue increase of 92 million leva (approximately 330 million yuan). Leftist representative Rumen Gechev raised concerns about the impact of a cigarette price increase on health, which could result in a reduction of 77 million packs of cigarettes.
Various companies within the industry are in favor of introducing a calendar to gradually increase the consumption tax. One proposal is as follows:
Virginia Zevelekova, a representative from one of the largest companies in the industry, commented that the new legislation poses a risk of increasing tobacco smuggling. She noted that the legislation doesn't take into account various product features, risk factors, and the different budgetary contributions of each tobacco product group.
According to Deputy Minister of Finance Liu Deimila Petkova, cigarettes have the smallest increase because they carry the greatest risk of smuggling compared to heated or other types of tobacco. She stated that specific excise taxes increase more because they are based on the principle of price, whereas proportional taxes are fixed rates. Ultimately, the government's revenue from taxes is not determined by business pricing decisions.
If the proposed calendar by the Ministry of Finance is approved, it would result in an increase of over 660 million rubles (approximately 2.47 billion yuan) throughout the entire period of consumption tax and value-added tax.
Statement:
This article is based on compiled third-party information, intended for industry-related communication and learning purposes only.
This article does not represent the viewpoint of 2FIRSTS and 2FIRSTS cannot confirm the truthfulness and accuracy of the content. The compilation of this article is solely for the purpose of industry communication and research.
As the level of translation may be limited, the translated article may not fully express the original text. Please refer to the original text for accuracy.
2FIRSTS maintains complete alignment with the Chinese government regarding any domestic, Hong Kong/Macau/Taiwan-related, and foreign-related statements and positions.
The copyright of the compiled information belongs to the original media and authors. If there is any infringement, please contact us for deletion.
Disclaimer
This article is provided solely for professional research, industry discussion, and informational purposes. Any references to brands, companies, products, technologies, or policies are made for factual reporting and analytical purposes only, and do not constitute endorsement, recommendation, promotion, or advertising by 2Firsts.
Nicotine-containing products, including but not limited to cigarettes, e-cigarettes, heated tobacco products, and nicotine pouches, carry significant health risks. Readers are responsible for complying with all applicable laws and regulations in their respective jurisdictions, including age restrictions and access limitations.
The information contained in this article should not be regarded as investment, legal, medical, regulatory, or commercial advice. While 2Firsts strives to ensure the accuracy and reliability of its content, it does not assume liability for any direct or indirect loss arising from errors, omissions, inaccuracies, or reliance on the information contained herein.
This article is not intended for individuals below the legal age for accessing tobacco or nicotine-related information in their jurisdiction.
Copyright Notice
This article is either original content produced by 2Firsts or content reproduced, translated, summarized, or adapted from third-party sources with attribution where applicable. The intellectual property rights of the original content remain with 2Firsts or the respective original rights holders.
No individual or organization may copy, reproduce, distribute, republish, modify, translate, or otherwise use this content without prior authorization. Any unauthorized use may result in legal action.
For copyright-related inquiries, corrections, or removal requests, please contact: info@2firsts.com.
AI-Assisted Translation and Editing Notice
Portions of this article may have been translated, edited, or reviewed with the assistance of artificial intelligence tools to improve efficiency and readability. Due to the limitations of AI-assisted translation and editing, discrepancies, omissions, or inaccuracies may exist when compared with the original source.
Where applicable, readers are advised to refer to the original source for the most complete and accurate information. If you identify any errors or believe that any content infringes upon your rights, please contact us at info@2firsts.com, and we will review and address the matter promptly.
