Bad news for smokers: the 2024 budget will increase taxes on traditional cigarettes, heated and chopped tobacco and e-cigarettes, which will affect all smokers. The approval comes from the text stamped by the Government Accounting Office, which foresees among the “taxes-related” measures an increase in two of the three components that make up the taxation of packs on traditional cigarettes: specification and minimum tax burden. But the variable component does not change. Increases are also expected in “do-it-yourself” smashed cigarettes, heated tobacco and e-cigarettes. Let’s see together how much the cigarette prices will increase starting from 2024.
Cigarettes, maneuver raises taxes and raises tariffs
Multi-product price increase affecting all categories of smokers, this is the measure contained in article 11 of the 2024 budget law, which increases taxes on cigarettes to support public finances. Among the many new features is the planning of increases for future years, a program that has been welcomed by multinational companies. But let’s go one by one, starting with traditional cigarettes.
As is often the case, from next year the price of “blondes” will be around 10-12 cents per pack, depending on the price range of the product, and taxes will increase from 28.20 euros to 29.30 euros per thousand cigarettes. The increases will continue in 2025, again reaching 29.30 euros per thousand traditional cigarettes, compared to the previously stated 28.70 euros.
Considering that the price increases for shredded tobacco will be much higher, it is no better for smokers than “do-it-yourself” cigarettes. It will increase from 140 euros to 147.50 euros per kilogram in the whole of 2024 and will reach 148.50 euros per kilogram in 2025. Multinational tobacco companies predict that starting next year it will cost at least 20 cents more and up to 30 cents more to buy a bag of shredded tobacco.
However, for heated tobacco, the news concerns 2026; because the tax increases for the next two years have already been planned with the latest budget laws. In the 2024 draft budget, we read that taxes will increase from 38.5 percent to 42 percent in three years, that is, around 10 cents per package.
Prices for liquid electronic cigarettes are also high, but starting from 2025. A price increase of around 1 percent is expected for 2026. Considering that there is a 15 percent taxation on nicotine liquids and a 10 percent taxation on nicotine-free products, the contribution is expected to increase to 16 and 11 percent in 2025, and to 17 and 12 percent in 2026, respectively.
Having said this, we can see how the government is increasingly focusing on new products to raise cash, given that sales volumes of combustion cigarettes have decreased over time, in the face of increasing consumer awareness of the lower health risks from the use of new generation products. .
There are other details that are certainly overshadowed in the new budget law, but are no less important. Here they are listed in the special section of Today.it for the 2024 maneuver.
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Source: Today IT
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
