Board of Finance adopted changes in excise on cigarettes

The Parliament of Serbia’s Board of Finance adopted the Government’s changes in the Law on Excises yesterday (March 30, 2009), which should reintroduce the decision that the fixed part of the excise on cigarettes amounts to 11 RSD, while the proportional share should equal 35% of the price.

The changes in the Law on Excises were adopted in January, but the amount of excise that had been determined by the Government of Serbia in association with the cigarette manufacturers was changed because of the amendment submitted by the Socialist Party of Serbia.

SPS’ amendment anticipated that the fixed part of the excise should amount to 8.92 RSD instead of 11 RSD, while the proportional share should equal 38% of the price of pack of cigarettes, which resulted in larger increase in prices of expensive cigarettes.

The State Secretary within the Ministry of Finance, Slobodan Ilić, said at the meeting of the Board of Finance that the changes had been suggested by emergency procedure in order for the budget incomes to be increased and the consumption of low-quality cigarettes to be reduced.

He said that those changes would lead to activation of the initial excise policy of the Government prior to year 2012.