The authorities hope to earn more money for the state budget by increasing the excise duty on tobacco products by 25%. The proposal is contained in the Fiscal Policy bill for 2023, which was presented by the Ministry of Finance. Although the calendar approved by the Government for the years 2020-2023 provides for a 15% increase for tobacco products, now the Executive comes with a higher increase, writes Infotag.
The Draft Fiscal Policy for next year foresees a 25% increase in excise duty on filter and non-filter cigarettes, tobacco supplies for tobacco heating devices, rolling cigarettes and cigars.
This increase goes against the 3-year fiscal calendar approved by the Executive in 2020, which provides for a 15% increase in excise duty on tobacco products.
At the same time, the excise duty on smoking tobacco and rolling tobacco remains at the same level fixed in the fiscal calendar.
According to the project, the respective amendment will ensure the additional increase of revenues for the period of 2023 by approximately 618 million lei, and the purpose of this measure is to maximize budget revenues and gradually reduce consumption.
At the same time, the Government comes with a deadline for aligning the excise duty on tobacco products from Moldova with the EU Directive. Thus, by 2025, an accelerated increase is proposed to reach the European level of 90 euros for 1000 cigarettes.
It should be noted that, at the time of approving the fiscal calendar, the authorities decided to follow a balanced approach, fixing the excise rate of 15% on tobacco products, taking into account the risk of illicit trade and the purchasing power of consumers, on whose shoulders all increases are transferred of taxes.