Deadline for Inventory of Cigarette and Tobacco Stocks Expires on January 7

We remind all taxpayers and other entities engaged in the trade of cigarettes and tobacco in Bosnia and Herzegovina that tomorrow, January 7, is the deadline for submitting inventory lists of cigarettes and smoking tobacco that were inventoried in stocks at the beginning of 2016, announced the Indirect Taxation Authority of Bosnia and Herzegovina, as reported by the Patria news agency.  

All entities engaged in the trade of tobacco and cigarettes in Bosnia and Herzegovina were required to inventory their stocks as of January 1, 2016, before trading, and the inventory lists must be submitted to the competent regional center of the Indirect Taxation Authority by January 7, 2016.

In addition to tobacco and cigarettes, taxpayers were also required to inventory the quantities of excise stamps for cigarettes and smoking tobacco that were received from the Authority but not used for marking these excise products by December 31, 2015, and submit the inventory lists to the Indirect Taxation Authority also by January 7, 2016.

By January 17, 2016, the payment of the difference in excise duty on the inventoried stocks must be made in accordance with the Decision on determining the specific and minimum excise duty on cigarettes and the amount of excise duty on smoking tobacco for 2016, which was adopted by the Management Board of the Indirect Taxation Authority in November 2015.

Tobacco products for which the excise duty difference has been paid, in accordance with the Decision on determining the specific and minimum excise duty on cigarettes and the amount of excise duty on smoking tobacco for 2016, may be sold until stocks are exhausted at new retail prices, which must be displayed in a visible place in the retail facility.

We remind you that the Decision on determining the specific and minimum excise duty on cigarettes and the amount of excise duty on smoking tobacco for 2016 stipulates that from January 1, 2016, the following excise duty will be paid on cigarettes:

a). proportional excise duty at a rate of 42% of the retail price of cigarettes

b). specific excise duty in the amount of 60 KM per 1,000 pieces, i.e., 1.20 KM per pack of 20 pieces,

If the total excise duty on cigarettes (proportional + specific), calculated at the above rates, is less than the minimum excise duty, then the minimum excise duty in the amount of 2.23 KM per pack of 20 cigarettes shall be paid.

The Decision represents a continuation of the harmonization of excise policy in Bosnia and Herzegovina with the excise policy on tobacco and cigarettes in the European Union, announced the Indirect Taxation Authority of Bosnia and Herzegovina.