Tobacco market participants are in favor of approving the calendar of excise tax increases in 2024-2026 proposed by the Ministry of Finance and for dialogue when discussing higher rates.
The representative of JTI Moldova, Silviu Neghina, stated this at the consultations organized by the parliamentary commission to discuss the draft fiscal policy for 2024. He noted that market participants support the proposals contained in the bill, but stressed that the discussions on excise policy that took place in during the plenary session of Parliament. “The data of the IPSOS study, conducted in March-April 2023, indicate that the illegal trade in cigarettes in Moldova increased by 4.5 p.p. compared to the second half of 2022 - from 7.4% to 11.9%. Considering last year's too high increase in excise taxes and the current market situation, we believe that the government's proposals on excise policy are absolutely reasonable,” Silviu Neghina said, stressing that market participants are in favor of maintaining transparency and dialogue in the context of a possible adjustment of the bill regarding excises on tobacco products. The head of the commission on economy, budget and finance, Radu Marian, noted that when approving excise taxes on cigarettes, one should focus on 3 components: budget revenues, risks of smuggling and harm to health. At the same time, he noted that the authorities should be tough in applying tools aimed at combating smoking, and raising prices is the best tool. Recall that the draft tax policy proposes in 2024-2026 to increase excises on cigarettes and other tobacco products by 7% annually. However, the proposed level of excises was criticized by PAS MP Dan Perciun. According to him, the increase in wages leads to an increase in the purchasing power of the population, and low excise taxes will make tobacco products more affordable. This will also lead to failure to fulfill Moldova's obligations to harmonize tobacco excises with the European level. The final decision on excise rates for tobacco products will be made when the bill is considered in the second reading. // 10.07.2023 — InfoMarket.
