The excise duties on tobacco products in 2017- 2019 will be adjusted to the rate of inflation of about 5% forecast for these three years. This is provided in the medium-term fiscal and customs policy document. In parallel, an excise duty of 350 lei + 12%, but not less than 460 lei will be put on 1,000 filter cigarettes in 2017. In 2018, the excise rate will increase to 400 lei + 12%, but not less than 520 lei, while in 2019 to 450 de lei + 12%, but not less than 580 lei, IPN reports.

Minister of Finance Octavian Armasu said the excise duties on tobacco products are increased in a move to protect the people’s health and to increase the budget revenues.

To achieve the minimum excise duty of €90 per 1,000 cigarettes imposed in the EU, Moldova should annually increase the excises by 20% and the ad valorem excise rates by 1 percentage point in 2017 – 2025. The Ministry of Finance intends to propose raising also the excise duties on related tobacco products such as electronic cigarettes and hookahs.

The suggestions concerning the taxing of tobacco products in the EU were formulated by the World Health Organization, which constantly reminds of the necessity of diminishing the use of tobacco products. These have a big negative influence on health and not only of the persons who use these. The WHO estimates that about 1 billion people will die from tobacco-related diseases worldwide during the current century.