The bill's annotation says the goal is to ensure an increase in funding for state functions and economic development by gradually raising excise duty rates over the three years from 2024 to 2026 on:
- alcoholic beverages,
- tobacco products,
- liquid used in electronic smoking devices,
- ingredients for the preparation of liquid used in electronic smoking devices,
- tobacco substitute products,
- certain petroleum products used in special economic zones and free ports.
Given the Coalition's desire to set the reduced 12% value-added tax (VAT) rate, not the standard rate, for fruit and vegetables next year, in 2024 it is planned to raise the excise on strong alcohol, cigarettes, chewing tobacco, and smoking tobacco, as well as tobacco substitute products more rapidly than previously planned.
“Consumption of these products has a negative impact on the health of the population, therefore the increase of excise duty is positive for them from the point of view of public health and is per the public interest because it would not facilitate the availability of these products,” the authors of the draft law stated.
The changes to the law will come into force on March 1, 2024.