Government announces 75 pct higher tax on heated tobacco products

The regulation will go into force on 1 March and is expected to add 300 million kuna (€40 million) to the government's revenue by the end of this year, Finance Minister, Zdravko Maric, said in a cabinet meeting on Thursday.

The excise tax on cigarettes will go up from 370 kuna (€49) to 400 kuna (€53) per 1,000 cigarettes, or 8.1 percent up. The minimum excise will also be raised from 824 kuna (€109) to 888 kuna (€117) for 1,000 cigarettes, or 7.8 percent. The proportional excise of 34 percent of the retail cigarette price will remain unchanged.

"The price of a pack of cigarettes should not increase by more than 2 kuna (€0.3)," Maric said, adding that cigarettes are still the most popular tobacco product in Croatia.

The excise on raw fine-cut tobacco will go up by 7.5 percent, from 800 kuna (€106) to 880 kuna (€116) per kilogram, while the tax on heated tobacco products will go up from 800 kuna (€106) to 1,400 kuna (€185) per kilogram, or 75 percent up. The excise tax on e-liquids will remain at zero.

(€1 = 7.57 kuna)