Taxation and Price

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Tax Gap of Heated Tobacco Products in Bulgaria

Cigarettes are subject to a mixed excise system that includes a specific excise based on sticks, an ad valorem based on the retail sales price (RSP), and a minimum excise. The tax code was amended under Guidance No 193, on July 20th, 2017, to include heated tobacco products. Effective July 1st, 2017, a specific tax (based on weight) is employed for all heated tobacco products. The State Budget of 2022 amended the tax code to introduce a new category for HTPs. These products are subject to a specific tax based on volume or weight.

As of 2023 and beyond, the rates are as follows:

Heated tobacco:

• From March 1st, 2023: BGN 282 per kg
• From January 1st, 2024: BGN 331 per kg
• From January 1st, 2025: BGN 380 per kg
• From January 1st, 2026: BGN 400 per kg

Cigarettes:

• From March 1st, 2023: BGN 117.5 per 1000 cigarettes and 23.50% of the RSP, but no less than BGN 185.5 per 1000 cigarettes
• From January 1st, 2024: BGN 126 per 1000 cigarettes and 22% of the RSP, but no less than BGN 194 per 1000 cigarettes
• From January 1st, 2025: BGN 134.5 per 1000 cigarettes and 20.5% of the RSP, but no less than BGN 202.5 per 1000 cigarettes
• From January 1st, 2026: BGN 143 per 1000 cigarettes and 19% of the RSP, but no less than BGN 211 per 1000 cigarettes

Sources:

• Law on Excise and Tax Warehouses (effective Jan 1, 2016, last amended Jan 25, 2023)

Last updated Sept. 1, 2023