Tax policy regarding tobacco products must be balanced and consistent with health policies - Radu Marian
The head of the parliamentary commission on economics, budget and finance stated this during consultations on the draft fiscal and customs policy for 2025, which took place on July 16 with the participation of deputies, representatives of the Ministry of Finance, business associations and economic agents. IDIS Viitorul representative Silviu Plopa expressed his opinion that the taxation of some tobacco products in Moldova is excessive. “Excise taxes on heated products are 80% higher than in EU countries and in countries that want to join the EU. This excessive taxation leads to an increase in illegal trade in these products. According to the calculations of our expert Veaceslav Ionita, the market for illegal tobacco products today reaches 12.3% of the entire tobacco market, and the budget lost 276 million lei in 2022 and 615 million lei in 2023 from this phenomenon,” he noted. Silviu Plopa referred to the fact that high taxation always leads to the growth of the informal sector, and recommended that the authorities apply excise policies consistent with European standards, while measures should be effective to limit access to tobacco and similar products by minors. The representative of Philip Morris International, Dumitru Molceanu, pointed out technical inaccuracies in the taxation of similar products, this concerns the application of the excise tax on disposable cigarettes per liter and heating tobacco products - per number of pieces. At the same time, the World Customs Organization recommends that this category of goods be taxed depending on volume and weight. He also noted that the authorities do not come to the attention of such specific products as nicotine pouches, which are popular, but they are not subject to excise taxes. During the discussion of this issue, disagreements arose as to whether these products are prohibited for import and sale and whether they are subject to taxes. As a result, they decided to consider the issue at a separate meeting. Recall that according to the draft fiscal and customs policy for 2025, foresees an increase in excise duty for e-cigarette cartridges and tanks from 2690,87 lei per liter to 3094,50 lei per liter. At the same time, the excise duty on heating tobacco products will increase from 1318.62 lei to 1384.55 lei per 1000 units in 2025. The remaining tobacco products are planned to be taxed in accordance with the previously approved policy. // 16.07.2024 — InfoMarket.
