[size=75:3vyujtfc]novinite November 19, 2009

Bulgaria Parliament Presents New Twist on Alcohol, Cigarettes Tax

The Members of the Bulgarian Parliament offered Thursday the latest surprise regarding the alcohol and cigarettes tax increase.

The new excise duties were changed and increased on second read during the Budget Committee meeting from their values approved on first read. The move makes the Parliamentary Hall voting crucial for the final decision.

The hard liquor tax, according to the latest stakes, would increase by BGN 0,72 per liter. The increase also includes the traditional homemade grape and fruit brandy - “rakia” where just the first 30 liters would be free of taxation. Only beer tax remains unchanged.

The cigarette tax will be BGN 100 for 1 000 cigarettes plus 23% of the sales prices. This will reduce the price difference between cheaper and more expensive cigarettes, but all cigarettes will be sold for over BGN 4 for a pack.

The opposition voiced once again their opinion the price hike would lead to an increase of cigarette and alcohol contraband while tobacco makers believe the move would not lower the staggering number of smokers in the country and would rather lead to people rolling tobacco, smoking cheaper cigarettes, or buying them on the black marker

Golly Gosh how on earth are the Bulgarian going to survive without their cigs they all seem to chain smoke. Tax on rakki wow!! another blow to those struggling, mind you, if they keep it under the 30 lts they might be ok. All I can say is

Oddy

[size=75:grud66dv]Sofia echo Fri, Nov 20 2009

Bulgarian MPs resurrect proposal to raise spirits excise

he strong public opposition to price hikes prompted Prime Minister Boiko Borissov to axe the Finance Ministry proposal to increase the excise duty on spirits, but the plan has been resurrected by Parliament's budget committee.

The 2010 Budget bill was passed by Parliament at first reading on November 17. The budget committee, meeting to discuss amendments before the second reading, passed the proposal to increase the spirits excise duty by 13.6 per cent to 1.25 leva a litre of pure alcohol, which will translate into a 0.7 leva to 0.75 leva a bottle increase in the retail price of spirits, Bulgarian media reported.

The amendment was tabled by MP Kircho Dimitrov from the Blue Coalition, which is backing the minority government of Prime Minister Boiko Borissov, but is not represented in Cabinet. Stoyan Mavrodiev, from Borissov's GERB party, opposed the proposal saying that it was unlikely to pass on Parliament floor.

Mavrodiev said that the increased excise duty would push more spirits producers to stop paying taxes and operate in the grey economy.

Former finance minister Plamen Oresharski, now an MP, echoed the sentiment, saying that collection of excises from spirits producers was one of the most difficult task faced by the National Revenue Agency. He said that rather than boosting Budget revenue by 60 million leva, the higher excise would have the opposite effect and cause spirits makers to stop paying taxes altogether.

The excise on home-made rakiya, which is set at half the size of the regular duty, will become 625 leva for 1000 litres. It was the increase in the excise duty on home-made spirits, a sensitive subject in Bulgaria, where home-made wine and rakiya are centuries-old traditions, that provoked public discontent. Households are allowed to make up to 30 litres of rakiya a year without paying tax.

An amendment to increase the excise duty on beer was rejected by the budget committee.

[size=75:at1c3d97]Sofia echo

Increased EU Excise Duty Will Hit Bulgarian Smokers Hard

The excise duty on cigarettes sold in the European Union will rise significantly in 2014, when the taxation level will become EUR 90 per 1 000 cigarettes.

The rate of duty is currently set at EUR 64 per 1 000;
the proportional increase in the tax rate will rise from 57% to 60% of the purchase price.

The European Council of Ministers has agreed these amendments to the Directive on excise duty on tobacco products, it has been announced on Tuesday.

The ministers have approved a transition period for Bulgaria, Greece, Estonia, Latvia, Lithuania, Hungary, Poland and Romania. These countries will fall in line on January 1, 2018.

In Bulgaria, excise duty has been increased at the beginning of 2010 to EUR 76 per 1 000, compared with the previous level of EUR 52.

At the end of December 2009, Finance Minister Simeon Djankov had stated that Bulgaria should follow the European average levels of taxation, and not the minimum. He also stated that the new tax level would remain in force in 2011.

Even if Bulgaria benefits from the grace period, it is estimated that, from 2018, cigarettes will double in price compared with current levels, with a likely average purchase price of BGN 4,68 for popular mid-range brands.

The state-owned cigarette monopoly Bulgartabac has already announced that the illegal trade in cigarettes will reach 40% of the total trade in 2010 over the recent increase in excise duty.

Bulgartabac reported in January that, after a survey made by the company, it was clear that smokers would look for an alternative source of cigarettes following the excise duty hike that came into force on January 1. They said that the current illegal trade in cigarettes amounts to 30% of the total - a doubling of the amount of illegal activity compared with 2008.

The Bulgarian Customs Agency has recently announced new restrictions on the number of duty-free cigarettes that may be imported to Bulgaria from non-EU neighbors in an effort to clamp down on the illicit trade. Prices of cigarettes in the region are generally significantly lower than in Bulgaria as a EU member state.

The Bulgarian government hopes that increased prices will cause more smokers to give up the habit, thereby easing pressure on the healthcare sector while also increasing state revenues from proportionally increased taxation rates.

[size=75:3j41w9u6]Sofia news agency

Increased EU Excise Duty Will Hit Bulgarian Smokers Hard

Excise duty on cigarettes will rise throughout the EU in 2014, leading to a dramatic increase in prices in Bulgaria and the other member states. Photo by BGNES The excise duty on cigarettes sold in the European Union will rise significantly in 2014, when the taxation level will become EUR 90 per 1 000 cigarettes.

The rate of duty is currently set at EUR 64 per 1 000;
the proportional increase in the tax rate will rise from 57% to 60% of the purchase price.

The European Council of Ministers has agreed these amendments to the Directive on excise duty on tobacco products, it has been announced on Tuesday.

The ministers have approved a transition period for Bulgaria, Greece, Estonia, Latvia, Lithuania, Hungary, Poland and Romania. These countries will fall in line on January 1, 2018.

In Bulgaria, excise duty has been increased at the beginning of 2010 to EUR 76 per 1 000, compared with the previous level of EUR 52.

At the end of December 2009, Finance Minister Simeon Djankov had stated that Bulgaria should follow the European average levels of taxation, and not the minimum. He also stated that the new tax level would remain in force in 2011.

Even if Bulgaria benefits from the grace period, it is estimated that, from 2018, cigarettes will double in price compared with current levels, with a likely average purchase price of BGN 4,68 for popular mid-range brands.

The state-owned cigarette monopoly Bulgartabac has already announced that the illegal trade in cigarettes will reach 40% of the total trade in 2010 over the recent increase in excise duty.

Bulgartabac reported in January that, after a survey made by the company, it was clear that smokers would look for an alternative source of cigarettes following the excise duty hike that came into force on January 1. They said that the current illegal trade in cigarettes amounts to 30% of the total - a doubling of the amount of illegal activity compared with 2008.

The Bulgarian Customs Agency has recently announced new restrictions on the number of duty-free cigarettes that may be imported to Bulgaria from non-EU neighbors in an effort to clamp down on the illicit trade. Prices of cigarettes in the region are generally significantly lower than in Bulgaria as a EU member state.

The Bulgarian government hopes that increased prices will cause more smokers to give up the habit, thereby easing pressure on the healthcare sector while also increasing state revenues from proportionally increased taxation rates.

Whilst on the subject of cigarettes let's have an up to date debate on the smoking ban topic which comes into force (what ever that means) in little over three months time. I cannot see for the life of me everybody going outside of an eating house/bar to have a smoke, there wouldn't be anybody left inside. Your comments

We thought that in Wales but everybody went outside to smoke,but here in Bulgaria i think they will still smoke in the bars in the villages,we will have to wait and see




Mike

i did'nt realise they were bringing in a smoking ban,is that the same as uk,cafe,bars,etc, mind you, i dont think many will take any notice,we have sat in cafe with a no smoking sign on the table,and an ashtray next to it, lol

unfortunatly...this one from this summer is an EU directive ...with fines to the establisments if not adheared too !

This reminds me of something very funny in some ways, I remember a while back going out for lunch with some friends of mine in Yambol, can't remember the name of the place but anyway while we were there I asked my friend (Phil) if he could arrange for us to see the kitchen since I had never seen a commercial Bulgarian kitchen, anyway at that he got up spoke to the owner who said yes not a problem, this was great I thought? anyway I must also mention that this was the first Bulgarian restaurant I had been in that was totally no smoking well we finished our lunch and I was eager to see the kitchen so off we went and yes it was extremely clean and as clean as I've ever seen in the UK and elsewhere, but there were 1 or 2 ashtrays around so it seems that although you weren't allowed to smoke in the restaurant you could in the kitchen

varnagirl wrote:

unfortunatly...this one from this summer is an EU directive ...with fines to the establisments if not adheared too !

As you well know, we have no objections to people smoking as long as we have finished eating. The worst thing in the world to a non-smoker is to have smoke puffed all over you whilst enjoying a meal. It is also good manners and appreciated by most people if the smoker ask the non-smoker do you mind if I have a cigarette. As I have said on a number of topics on this forum
Live and let live

varnagirl wrote:
unfortunatly...this one from this summer is an EU directive ...with fines to the establisments if not adheared too !
I think the Bulgarians will make their own mind up what they will do,at the moment they take no notice of EU rules so i cant see them stopping smoking,its going to be a minefield over here in Bg,,,,i think its a case of watch this space




Mike

[size=75:1ceuowhi]novinite 18 February 2010


Bulgaria Ruling GERB against Full Smoking Ban

The Members of the Parliament from the ruling GERB party proposed the annulment of the full smoking ban that should become effective in Bulgaria on June 1.

The proposal states that for restaurants, clubs and coffee shops with an area less than 100 square meters, the owner can himself decide if smoking would be allowed, while for larger establishments there must be a well-isolated smoking space.

The motive behind the proposal is that the full ban would harm restaurant businesses and the tourist sector and would be frequently violated anyway.

The full ban is to remain effective for all other public spaces, the Citizens for European Development of Bulgaria (GERB) party proposes.

GERB says the transition to a full ban must be done in stages and completed in the next 5 years.

The smoking ban was decided on by the previous Parliament and is part of the Health Act amendments.

[size=75:3pkwukfl]novinite 23 February 2010

Bulgaria Delays Tough Smoking Ban till 2011

Bulgaria's ruling party may delay until 2011 the introduction of a new smoking ban in the country, which has the second highest percentage of smokers in the European Union.

The postponement in the introduction of the ban, initially set for June this year, aims to avoid hurting the tourist industry during times of crisis, according to the Finance Minister Simeon Djankov.

“I hope that this is a temporary delay and the measure will be introduced in Bulgaria. This is the trend across Europe and not only Europe - smoking is forbidden in all public buildings,“ Djankov commented.

Under the proposed changes the owners of restaurants, clubs and coffee shops with an area less than 100 square meters, should decide if smoking would be allowed, while for larger establishments there must be a well-isolated smoking space.

The full ban is to remain effective for all other public spaces.

The smoking ban was voted by the previous Parliament and is part of the Health Act amendments.

Bulgaria ranks second after Greece in the EU in terms of number of regular smokers as a percentage of the population, according to a Eurobarometer survey.

They tried to bring a no smoking ban in Greece.

We went to Rhodes last June and yep its in place (not). Cafes and bars just move tables & chairs outside with some that just about meet the outdoor critera.

Me and the boss do not smoke but say it is a matter of personal choice.

So there you go don't smoke, don't drink and getting old But would not stop the enjoyment of others.