New Excise Duties on Cigarettes, Smoking Tobacco, and Other Tobacco Products Come into Effect

As of August 1, new minimum excise duty rates on cigarettes, smoking tobacco, and other tobacco products have come into force in Serbia, in line with a decision by the Government of the Republic of Serbia. This adjustment is expected to result in higher retail prices for cigarettes.

In practice, changes in excise rates typically influence the retail prices of cigarettes and tobacco, with final pricing decisions made by manufacturers and distributors. Historically, producers have passed these increases on to consumers, with average price rises of around RSD 10 per pack.

According to the Official Gazette, the new minimum excise duty for cigarettes is set at RSD 235.11 per pack, while the rate for cut tobacco and pipe tobacco is RSD 8,228.85 per kilogram.

Compared to the previous rates established under the Government’s February decision, this represents a slight increase. At that time, the minimum excise on cigarettes was RSD 233.36 per pack, and the rate for cut and pipe tobacco was RSD 8,167.60 per kilogram.

It is also worth noting that, under amendments to the Excise Duty Law effective January 1, 2025, in addition to nicotine pouches, excise taxation now applies to herbal smoking and heating products, as well as shisha flavors.

These excise changes are part of the regular alignment process with Serbia’s planned tobacco taxation policy, which is also linked to the country’s obligations in harmonizing its legislation with the European Union.

Vlada Republike Srbije

Government of Serbia

excise duties on tobacco products

increase in excise duties