Bulgaria's Customs Agency Head Expects Decrease in Cigarette Excise Duty Revenues

Politics » DOMESTIC | June 8, 2012, Friday // 13:30
Bulgaria: Bulgaria's Customs Agency Head Expects Decrease in Cigarette Excise Duty Revenues Customs Agency Director Vanyo Tanov has argued that the newly adopted smoking ban will not affect smuggling rates. Photo by BGNES

Customs Agency head Vanyo Tanov expects a decrease in revenues from excise duty on cigarettes after the entry into force of the total ban on smoking in indoor public places.

In a Friday interview for Darik radio, Tanov predicted that the second half of 2012 would bring an estimated BGN 100 M less in cigarette excise duty revenues into the state coffers under the most optimistic scenario.

To illustrate his point, he said that Spain, the latest EU country to introduce a smoking ban in indoor public places, had reported a 33% decrease in cigarette excise tax revenues one year after the entry into force of the restrictions.

"This is only logical, because this is what the measure is aimed at – restricting smoking in public places is expected to lead to a decreased consumption of cigarettes," he explained.

Tanov suggested that the step would not affect smuggling, adding that consumers of illegal cigarettes belonged to social groups that did not work in offices and would therefore continue to smoke.

"I do not believe that smuggling is on the rise, judging by the revenues. In the first five months of 2012, the Customs Agency collected a total of BGN 62 M more as compared to last year," he noted.

Regarding the proposal of the municipal administration in Svilengrad that the town should host the headquarters of the Customs Agency, Tanov said that the officials had shown "a good sense of humor".

Municipal councilors from Svilengrad came up with the proposal against the backdrop of the government's plans to move the Customs Agency to Ruse and the news that the customs office in Svilengrad might be closed

Tanov stressed Friday that the fate of the Svilengrad customs office had not been decided yet.

He announced that the procedure for the dismissal of the customs officers arrested on May 2 at the Kapitan Andreevo border crossing point had just started.

On the evening of May 2, the day shift of 32 customs officers at Kapitan Andreevo was detained within a special operation codenamed "Customs" conducted by the Interior Ministry and the prosecution.

Charges were pressed against 8 customs officers, with five officers charged with participating in an organized crime group specialized in racketeering and three officers facing bribery charges.

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Tags: smuggling, excise duty, Customs Agency, Vanyo Tanov, smoking ban, Svilengrad, Kapitan Andreevo, customs officers

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