Bulgaria raises cigarette excise tax, prompting price hikes

Effective 1 August, Bulgaria increased the excise duty on tobacco products from €113.51 to €120 per 1,000 cigarettes, a rise of about €13 per pack. After accounting for VAT, the total tax burden on a pack is expected to grow by roughly €0.16, and importers anticipate an average price increase of the same amount, though the exact rise will depend on each company's pricing strategy. Existing stock bearing the old tax band will continue to be sold at previous prices until depleted.

In the first half of the year, excise revenue from tobacco fell by €71.2 million compared with the same period in 2025, a drop attributed to the previous May‑2025 tax hike that led manufacturers to stock larger quantities before the change. The finance ministry plans further excise increases to €126 per 1,000 sticks from March 2027 and €132 from January 2028, which will push cigarette prices higher in the coming years.