Lithuania - September 1st - excise duty on cigarettes increased..


September 1, 2009 - On Tuesday, September 1st a new excise duty on cigarettes comes into force in Lithuania. Under Lithuania's EU accession treaty, the excise duty on cigarettes is raised to 132 litas (38.948 euros, 54.33 USD) from 95 litas (28.03 euros, 39.10 USD) as of September 1.

From now on, a pack of the most popular cigarettes will cost around 1.25 litas (0.3620 euros, 0.514 USD)or 20% more, reports ELTA/LETA.

The excise duty on cigarettes is raised for the second time this year; firstly it was raised on March 1. During 2009, the price of a pack of the most popular cigarettes will go up 47%, a highest increase in an excise duty in Lithuania over a year ever.

According to the data of the Finance Ministry, the state budget is to receive additional revenues of around 165 million litas (47.8 million euros, 67.9 million USD) in 2009 due to the raised excise duty on cigarettes.

This increase in the excise duty is the last step in meeting the minimum requirement for taxing cigarettes in the European Union. Lithuania is obliged to reach the minimum requirement for the excise duty on cigarettes which is that the excise duty should comprise at least 57% of the retail price of the most popular cigarettes and reach at least 64 euros (221 litas, 91 USD)) for 1,000 cigarettes. In order to satisfy the minimum EU requirements Lithuania still has to raise its excise duty on cigarettes 29% by the end of this year.

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Reference: Excise duty on cigarettes increased 132 litas, Danuta Pavilenene, BC, Vilnius, The Baltic Course, 9/1/2009.

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