As a result, the budget will not only fail to feel the effect of the new duties but will actually lose BGN 20 million, as compared to the initial plan. The higher rates will reduce consumption by 4,500 tonnes. However, the calculations were made for the current tobacco goods market, which amounts to some 18,000 tonnes a year. Without this extra BGN 200 million the government will not be able to materialise its welfare measures, Kadiev admitted. The revenue from the duty on cigarettes was initially projected at BGN 111 million, the additional effect from the higher rates is BGN 200 million, which makes a total of BGN 311 million, deputy finance minister Georgi Kadiev explained. The parliamentary budget committee approved the new rates in the Excise Duty Act, which were initially planned to take effect from 2008: BGN 15 per 1,000 cigarettes plus 48% of the sales price. Excise duty hike to cost Bulgarian tobacco monopoly 100 mln levs in revenues _x000d_īulgartabac’s net income will decline by BGN 100 million as a result of the early introduction of higher excise duty rates in 2006, the head of the Bulgarian tobacco holding, Georgi Kostov, said.
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