Council of Ministers of Bosnia and Herzegovina in Session

The Council of Ministers of Bosnia and Herzegovina defined a Proposal law on Amendments and Supplements to the Law on excises in Bosnia and Herzegovina, introducing specific excises to cut tobacco, i.e. cigarettes and cigarillos. 

The intention is to provide for protection of legal producers making-up their commitments, to cease a downfall trend in excises revenues from tobacco products, to contain illegal market and harmonise excises to different tobacco products.

The existing law does not provide for specific excises on some of tobacco products, like cigarettes and cigarillos, including on cut tobacco, as well, which caused distortion at tobacco products market.

Under the Amendments and Supplements to the Law, an excise proportional to 42 per cent above base defined by retail price and tobacco products unit measure.

Also, the excise on tobacco for smoking is defined   at the rate of at least 80 per cent of minimum excise on 1.000 cigarettes. The BIH Indirect Taxation Office Steering Board will set the excise level by October 30, this year, at latest, to be applied starting from January 1 next year. The exemption is excise on tobacco for smoking for 2014, which will amount to KM78/kg.

The adoption of the Law, as proposed by the BIH Indirect Taxation Office Steering Board, represents the continuation of the process of total tax burden harmonisation with a new EU Directive, prescribing minimum total excise of EUR 90 per 1.000 cigarettes.

The Proposal Law on Amendments and Supplements to the Law on excises in BIH will be provide to the Parliamentarian Assembly of BIH for consideration under urgent procedure.

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