Excise tax on cigarettes and tobacco, RA and European Countries in 2014

Open Data Albania is exploring the cigarette excise tax levels in the country and the region. Referring to the Albanian legislation, excise is a tax applied to the excise products, manufactured and imported, delivered for consumption in the territory of the Republic of Albania. Products that are subject to excise duty are: energy products, alcohol and alcoholic beverages, tobacco and tobacco products, coffee, incandescent lamps, tires, fireworks, piles and batteries.

In all countries taken under consideration, excise is calculated with a fixed tax per 1000 cigarettes and a certain percentage of the sales price, unlike our country, where cigarettes excise tax is calculated only as fixed tax per 1000 cigarettes. Countries with higher fixed tax per 1000 cigarettes are the UK, followed by Germany, Turkey. While countries with higher taxation on the sale price, are Turkey, Italy, France.

^{Source: European Union, the tax authorities of the respective countries, OECD       
Processing and comments: ODA}

Tobacco excise during the years 1992-2014 has changed constantly. In 1992 excise was calculated as the 75% of current prices for domestic goods, and for imported goods it was calculated on the basis of the registered custom value, adding the amount of custom duty. Also in July of this year, excise had a 60% decrease in value. In 1993 the legislature decided to increase the excise tax to 70%, to change it again in 1995 to 50%. In 1997 there was a tobacco categorization on the basis of its source and his category.

Excise taxes ranged from 9all/packet for domestic goods, to 45all/packet for import goods. In December 2002 the excise tax was unified in 20all/packet. From this year until the actual one, cigarettes in the country and from the import are unified with their prices, which coincides with the internal problems of cigarette production, where domestic production occupies an average of 30% of the consumer.

Source: European Union, the tax authorities of the respective countries, OECD       
Processing and comments: ODA

According to Law no. 180/2013 tobacco products are categorized into four sub products namely: Cigars and cigarillos containing tobacco, cigars, cigarillos and cigarettes of tobacco substitutes, other processed tobacco and tobacco substitutes, homogenized tobacco, tobacco extracts and essences, cigarettes containing tobacco, that are the cigarettes that we consume. Each of the categories has different levels of excise tax.

^{Source: European Union, the tax authorities of the respective countries, OECD       
Processing and comments: ODA}