The dawn of 2024 has ushered in notable shifts in tobacco taxes across various countries, impacting both traditional and emerging tobacco products.
Sri Lanka: In response to an upward revision in excise duty and value-added tax, Ceylon Tobacco Co., the market leader, has implemented price increases for four cigarette categories. The adjustments range from LKR5 ($0.02) to LKR25 per stick, as reported by the Asian Mirror. The Sri Lankan government cites the need for augmented revenue streams and a commitment to curbing tobacco consumption as the rationale behind these tax hikes.
Azerbaijan: Significant changes have occurred in Azerbaijan’s tobacco tax landscape. The excise rate for cigarettes has risen from AZN38 ($22.35) to AZN45.5 per 1,000 sticks. Similarly, cigarillos are now subject to an increased excise rate, climbing from AZN43 to AZN45.5 per 1,000 sticks. E-cigarettes and heated tobacco products face a new tax of AZN16 per 1,000 units, up from AZN14 per 1,000 units in 2023. Additionally, the excise rate for single-use electronic cigarettes, hookahs, and their substitutes has surged from AZN0.25 manats to AZN2.
Belgium: The beginning of the year marked the implementation of a new e-liquid tax in Belgium. Set at €0.15 per milliliter, this tax is designed to shape the fiscal landscape for e-liquids and contribute to the broader fiscal strategy of the country.
These tax adjustments reflect the ongoing efforts by governments worldwide to strike a balance between revenue generation and public health considerations, particularly in the realm of tobacco and related products.
