Excise Tax Rises. For the Last Time?

President Ivan Gašparovič signed an Amendment of the Act on Excise Tax on Tobacco Products last Thursday, on Ocotber 2. Following this, the excise tax rate on cigarettes is to be higher since February 1, 2009 from present 1.41 (€0.0468) a piece to Sk1.58 (€0.0525) and there are expected several effects. The amendment is due to the progressive approach of the Slovak Republic to the minimal tax burden on tobacco products valid in the European Union (EU) and "it is the last tax increase (on tobacco products) to reach the minimum tax burden set by the EU guideline" the report of Ministry of Finance reads. The directive sets two criteria to be met concurently; each member state is to apply an overall minimum excise duty of 57% of the retail selling price for cigarettes of the price category most in demand and it is to be at least... [read full story]