Prices up for tobacco and alcohol

The cigarettes and alcoholic beverages will be more expensive on the Romanian market within days, following the inclusion of a sin tax into the excise value. The sin tax was envisaged in order to reduce excessive consume of alcohol and tobacco and to provide additional money to the Health budget. It was established to 200 Euros/ hl of alcohol and 10 Euros/thousand cigarettes.

The Government’s decision was supposed to enter into force on May 1, but the measure was postponed due to the free-day labour holiday. According to the law, the money coming from the sin tax is to become a revenue source for the Health Ministry starting January, 1, 2007.

The price of cigarettes will hike again on July, 1, when the excises will be increased. According to the National Statistics Institute, in Romania the bread consume is 8% while cigarettes consume is 4%.