October 31, 2020

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Cigarette price tripled in 20 years | money

Cigarette price tripled in 20 years | money

This is almost entirely due to higher consumption taxes. At the same time, other excise products like alcohol only increased the price by 40%. This has emerged from research by the Central Bureau of Statistics.

Excise duty

This year the cabinet increased the excise tax on a pack of twenty cigarettes by 14 cents from January 1st and by a further euro from April 1st. On the same day, € 2.50 was added to a 50 gram pack of tobacco.

Overall, tobacco products became almost 19% more expensive. This is the largest percentage price increase since 2005. In addition, the sale of menthol cigarettes was banned that year.

Treasury

Excise taxes account for more than three quarters of the price of smoking products. In 2019, the consumption tax allowed EUR 2.5 billion to flow into the state coffers, which was slightly less than EUR 1.6 billion in 2000.

In other European countries, too, smoking became more and more expensive. The price rose particularly in the Baltic states, with Latvia as an outlier. Tobacco there now costs almost six times more than in 2000.