A Pack of Cigarettes 7 KM from January 1st!

From the beginning of 2017, new cigarette prices will be in effect in Bosnia and Herzegovina. Cigarette manufacturers and distributors were obliged to submit new retail prices for cigarettes that will be in effect from the beginning of 2017 to the Indirect Taxation Authority (UIO) by November 30, 2016. These prices were determined in accordance with the Decision on determining the special and minimum excise duty on cigarettes and the amount of excise duty on smoking tobacco for 2017, which was recently adopted by the Management Board of the Indirect Taxation Authority.

The Decision on determining the special and minimum excise duty on cigarettes and the amount of excise duty on smoking tobacco for 2016 defines that from January 1, 2017, the following excise duty will be paid on cigarettes:

- a proportional excise duty at a rate of 42% of the retail price of cigarettes
- a specific excise duty in the amount of 67.50 KM per 1,000 pieces, or 1.35 KM per pack of 20 pieces,

If the total excise duty on cigarettes (proportional + specific), calculated according to the above rates, is less than the minimum excise duty, then the minimum excise duty in the amount of 2.42 KM per pack of cigarettes for a pack of 20 pieces is paid.

The excise duty on smoking tobacco in 2017 is determined to be 80% of the minimum excise duty on cigarettes in 2016 and amounts to 96.80 KM per kilogram.

The decision represents a continuation of the harmonization of excise policy in BiH with the excise policy on cigarettes in the European Union.

Taxpayers and other persons involved in the trade of cigarettes and tobacco are obliged to inventory their stocks as of January 1, 2017, and submit the inventory lists to the competent regional center of the UIO by January 7, 2017. They are also obliged to inventory and submit to the UIO inventory lists for stocks of old excise stamps that have not yet been used. The difference in excise duty must be calculated on the existing stocks in accordance with the Decision on determining the special and minimum excise duty on cigarettes and the amount of excise duty on smoking tobacco for 2017, which must be paid into the Single Account of the UIO by January 17, 2017.

According to the new price lists, a pack of Marlboro will cost 5 KM from January 1st, and Aura Exclusive from FDS will cost as much as 7 KM.