BUSINESS

Cigarettes more expensive as of January?

Cigarette Prices radiosarajevo.baNew prices of cigarettes in Bosnia and Herzegovina will be effective as of the beginning of 2016.

Producers and distributors of cigarettes were obliged to deliver new retail prices of cigarettes to the Indirect Taxation Authority (UIO) until November 30, 2015. These prices are to be effective as of early 2016, and they have been defined in accordance with the Decision on defining special and minimum excise tax on cigarettes and amount of excise tax on tobacco for smoking for 2016, which was recently adopted by the Steering Committee of the Indirect Taxation Authority.

Decision on defining special and minimum excise tax on cigarettes and amount of excise tax on tobacco for smoking for 2016 defined that following excise tax will be paid for cigarettes as of January 1, 2016:

  1. a) valorem (proportional) excise tax per rate of 42 percent of the retail price of cigarettes
  2. b) special excise tax amounting to 60,00 BAM for 1,000 pieces, i.e. 1.2 BAM for a package of 20 pieces

In case the total excise tax on cigarettes (valorem plus special), calculated by abovementioned rates, is lower than the minimum excise, then a minimum excise in the amount of 2.23 BAM per a box of cigarettes (20 pieces) is paid.

The excise tax on tobacco for smoking in 2016 is defined in a way that it amounts to 80 percent of the minimum excise tax on cigarettes in 2016, and it amounts to 89.2 BAM per kilogram.

The decision represents a continuation of harmonization of excise tax policy in B&H with the cigarette excise tax policies in the European Union.

(Source: klix.ba)

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