Excise duty on cigarettes will rise to 54 per cent from 2007, compared to 48 per cent at present, the cabinet decided on 9 November.

From next year, Bulgarian producers will pay 6.50 leva a 1,000 pieces of cigarettes, down from 15 leva at present. This will raise the duty on import and deluxe cigarettes and reduce the rates on lower-class tobacco products, finance minister Plamen Oresharski said. The excise on medium-class cigarettes will remain unchanged. The changes will affect mainly the importers of brands that cost four leva or more a 20-cigarette box. (pi)