December 16 2022

Bulgaria Increases Excise Duty Rates for Tobacco Products

Source: IBFD Tax Research Platform News

The excise duty rates of tobacco and tobacco products have been increased for the period between 2023 and 2026 under recently gazetted legislation. The amendments to the Excise Duties and Tax Warehouses Act (EDTWA) are the following.

Tobacco used for smoking:

  • BGN 167 per kilogram from 1 March 2023;
  • BGN 184 per kilogram from 1 January 2024;
  • BGN 202 per kilogram from 1 January 2025; and
  • BGN 222 per kilogram from 1 January 2026.

Specific excise duty rate:

  • BGN 117.5 per 1,000 cigarettes as of 1 March 2023;
  • BGN 126 per 1,000 cigarettes as of 1 January 2024;
  • BGN 134.5 per 1,000 cigarettes as of 1 January 2025; and
  • BGN 143 per 1,000 cigarettes as of 1 January 2026.

Ad valorem excise duty rate:

  • 23.5% of the selling price as of 1 March 2023;
  • 22% of the selling price as of 1 January 2024;
  • 20.5% of the selling price as of 1 January 2025; and
  • 19% of the selling price as of 1 January 2026.

Cigarettes (minimum excise duty rate):

  • BGN 185.50 per 1000 pieces from 1 March 2023;
  • BGN 194 per 1000 pieces from 1 January 2024;
  • BGN 202.50 per 1000 pieces from 1 January 2025; and
  • BGN 211 per 1000 pieces from 1 January 2026.

Additionally, the amendment also provides an explicit clarification that e-cigarette liquid containing nicotine is considered a tobacco product.

The full text of the Official Gazette No. 100, issued on 16 December 2022, is available here (in Bulgarian only).