Bulgaria raises tobacco excise taxes and introduces online gambling affiliate licensing

Effective 1 August 2026, Bulgaria will increase excise duties on all tobacco products, including cigarettes, smoking tobacco, heated tobacco and electronic cigarettes. The cigarette rate rises from €113.51 to €120 per 1,000 sticks, adding about €0.13 per pack before VAT and up to €0.16 after VAT. The excise on smoking tobacco goes from €121.69 to €130 per kilogram, and on heated tobacco from €214 to €225 per kilogram. The new regime also covers e‑cigarettes and related products. The legislation sets a further step‑wise increase, with the cigarette rate to reach €126 per 1,000 sticks from March 2027 and €132 from January 2028.

The finance ministry expects the August increase to generate an additional €41.9 million in revenue, bringing the total fiscal effect of the 2026 tobacco tax hikes to €155.9 million, including VAT. The measures aim to boost state‑budget receipts and align Bulgaria with European Union negotiations on higher minimum tobacco tax levels.

At the same time, a licensing framework for online gambling affiliates will start on 1 August, imposing a €6,000 annual state fee on operators that promote licensed gambling services.