The Bulgarian Cabinet on Monday proposed a hike in cigarette excise duties that would substantially increase prices of expensive brands.

The bill, which is yet to be approved by parliament, sets the excise duty at BGN 40.5 (EUR 20.7) for 1,000 cigarettes plus 42 per cent of the retail price. The initial draft of the finance ministry had excise duties on low-end brands rise by 33 per cent and the excise on more expensive ones by only three per cent.
The higher percentage weighs heavier on expensive brands, as the duty is based on the retail price, said Peter Imre, head of corporate affairs for Romania and Bulgaria at tobacco heavyweight Philip Morris said. Industry sources say that the proposal is aimed at supporting the state-owned tobacco monopoly Bulgartabac, which is focused on the low and middle price segment. (pi)