A rise in the excise duty on tobacco products starting April 1 will lead to an increase in cigarette prices by about 2.40 leva per pack. This adjustment stems from changes introduced by the European Commission in its new directive on minimum excise duties, which was reflected in Bulgaria's draft budget for 2025, adopted in the National Assembly.

According to the draft document, the European Commission’s revised minimum excise duty on cigarettes will now be set at 180 euros per 1,000 cigarettes, or 3.60 euros per pack. This marks a doubling of the current excise rate, which is currently 90 euros per 1,000 cigarettes. For countries like Bulgaria, the new excise rates will be adjusted based on national price levels, with data from the European Statistical Office showing that tobacco product prices in Bulgaria are approximately 56.6% of the EU average.

The updated minimum excise duty for Bulgaria will be 153.96 euros per 1,000 cigarettes, translating to a tax of 6.02 leva per pack of cigarettes, up from the current 4.05 leva. The excise increase will result in a price hike of about 2.40 leva per pack after the application of a 20% VAT on the new duty. The Ministry of Finance plans to implement the excise increase gradually, with proposals suggesting either a series of three incremental hikes, a sharp one-time rise, or the continuation of the current annual increase schedule.

In addition to the April increase, there will be a further excise tax hike on tobacco products, including cigarettes, on May 1. This increase, included in the 2025 budget, is expected to generate an additional 203 million leva in 2025 and a total of 953 million leva from 2025 to 2028. The proposed excise tax from May 1 includes a rate of 131 leva per 1,000 cigarettes plus 22% of the selling price, with a minimum of 210 leva per 1,000 cigarettes. This change will increase the excise tax by about 15 cents per pack, with VAT bringing the total increase closer to 20 cents per pack.

Furthermore, excise taxes on heated tobacco products and electronic cigarettes will also be raised starting May 1.