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Tax Gap of Heated Tobacco Products in Romania
Heated tobacco products were introduced in Romania in 2015 with the launch of IQOS by Philip Morris International. In January 2016, Romania’s Fiscal Code was amended to create a new tax category for heated tobacco which went into effect. Heated tobacco products are defined as “products which work by heating tobacco sufficiently to release an aerosol that can be inhaled, without the blended tobacco being combusted” (Article 439). As of January 1st, 2022, the excise duty amounts to RON 834.63 per kg of tobacco. It is expected to increase:
- From 2024: RON 094.93 per kg of tobacco
- From 2025: RON 1,146.62 per kg of tobacco
- From 2026: RON 1,198.28 per kg of tobacco
Romania applies a mixed excise tax system on cigarettes. As of Fiscal Year 2023/24, the specific excise tax is RON 439.94 per 1000 cigarettes, the ad valorem excise rate is 12% of the retail sale price ad valorem excise is set to decrease to 11% in 2024 and 10% in 2025 (ORDINANCE No. 16 of July 15th, 2022), while the specific tax will be increased. There is also a minimum specific excise of RON 625.97 per 1000 cigarettes in 2023.
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Last updated Sept. 1, 2023