With the entry of Serbia into the EU, the price of cigarettes will become peppery, we know that, but what else must become more expensive due to European excises, and what does not have to?
These days, we have witnessed another increase in the price of cigarettes, and due to the increase in the amount of excise duty on fuel, we can expect these days to pay for an additional “guild” of freedom of movement and enjoyment of life at gas stations.
And so it will be until we enter the European Union, because the harmonization of Serbia’s excise policy with that of the EU, after becoming a member, will certainly lead to higher prices of cigarettes, but not necessarily to higher prices of other excise products, such as alcohol, because their price depend on the situation on the EU market, the European Western Balkans portal reported.
– At the moment of joining the EU, excise duties on cigarettes in Serbia will be increased, because they are in absolute amount lower than the minimum excise duty prescribed by the directives. It is quite certain that by joining the EU, cigarettes in Serbia will become more expensive, because the minimum excise tax on cigarettes in the EU is 90 euros per 1,000 pieces, or 1.8 euros – per pack – said the advisor in the National Alliance for Local Economic Development (NALED ) Jelena Rancic.
As she stated, the excise tax on cigarettes in Serbia is currently around 1.20 euros, ie 67 euros per 1,000 cigarettes.
– On the other hand, the retail prices of cigarettes in the EU range from 2.5 euros (Bulgaria) to close to 10 euros (Ireland), while the average at the EU level is around five euros per pack of cigarettes – specified Rancic, who is also the coordinator working groups of the National Convention on the EU (NCEU) for Chapter 16, which deals with taxation.
So, when we enter the EU, it will be clear to us from the situation in the wallet that in Germany, the hell of “Marlboro” costs more than 7 euros, and in Serbia today only 3 euros.
At the same time, as Rancic added, by prescribing the excise tax on strong alcoholic beverages in Serbia in the amount of the minimum in the EU, which is around 1.5 euros, “it might not necessarily lead to higher prices of products or at least not to a greater extent currently valid excises (fruit brandy around 1.1 euros and cereal brandy around 2.8 euro).”
That is why we did not get the green light to open Chapter 16, Rancic pointed out recently at the online conference “Economic Topics in the Process of European Integration of Serbia”, because the European Commission assessed that Serbia did not meet the key criterion for equalizing the excise tax on spirits (domestic to foreign).
For example, whiskey will not increase in price, because even now 0.75 liters of “Johnny Walker Red” costs as much as in Germany, about 13 euros, while “plum”, “quince” and “vine” will have to increase in price by several hundred dinars per bottle.
According to her, it will be necessary to introduce home-made alcoholic beverages into the excise system, while the EU directive provides for the possibility of applying lower rates of excise duties on alcoholic beverages produced by small producers, she said.
– The extent to which the price increase or reduction of a certain product will happen will be determined by the EU market, once we find ourselves on it. Therefore, at this moment, it is very difficult to assess the extent to which the price of a certain excise product will change – stated Rancic.
She reminded that the Law on Excise Duties has been amended, in the part related to strong alcoholic beverages, so that the amount of excise duty is prescribed according to the percentage of alcohol, and not according to the category of beverages, is one of the conditions for opening the negotiating Chapter 16 in Serbia’s EU accession process, which relates to taxation.
– After that, until the moment of joining the EU, Serbia will have to introduce excise taxes on energy sources such as natural gas, coke and coal. In addition, in order to comply with the EU Directive, the manner of reporting excise duty on electricity for final consumption, which according to the current Law on Excise Duties is calculated as a percentage (7.5 percent), will have to be changed so that it is expressed in absolute amount – said Rancic.
She also pointed out that the EU also prescribes minimum amounts of excise duties for energy products, tobacco products and all alcoholic beverages, but not maximum ones.
– Member countries retain full fiscal sovereignty to introduce excise duties on some other products, in the amount of minimum or higher than the minimum, which of course depends on the fiscal policy of a particular country – said Rancic, Srbija Danas reports.
