Bulgaria to Raise Excise Taxes on Tobacco and Nicotine Products
Bulgaria will raise excise taxes on cigarettes, cigars, heated tobacco products, and vape liquids starting in January 2026. The increase, approved under the 2026 state budget, will be implemented gradually over four years. The Ministry of Finance expects the reform to generate about €130 million in additional revenue by 2026.
Key Points
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Excise duty on cigarettes rises from €107.57 to €113 per 1,000 sticks.
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Heated tobacco tax increases to €214.74 per kilogram (+€10).
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E-liquid excise increases from €0.23 to €0.25 per milliliter, regardless of nicotine content.
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Cigars and cigarillos will be taxed at €212.70 per 1,000 units.
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The reform is expected to bring €130 million in extra budget revenue plus €26 million VAT.
Gradual Implementation Over Four Years
On November 6, 2025, Bulgaria confirmed that it will raise excise taxes on all tobacco and nicotine products starting at the beginning of 2026. The adjustment covers cigarettes, cigars, heated tobacco sticks, and vape liquids and will be phased in over four years.
Bulgaria’s Position in the EU Tobacco Market
For the past decade, Bulgaria has maintained one of the lowest tobacco excise rates in the European Union, aiming to keep consumer prices low. As a result, the country currently ranks last in the EU in terms of tobacco taxation — including for newer nicotine products.
Cigarette Tax Increases and Expected Price Impact
Starting January 1, 2026, the excise duty on cigarettes will rise from €107.57 to €113 per 1,000 sticks. For a standard 20-stick pack, the tax will increase from €2.14 to €2.27.
With 20% VAT included, the retail price is expected to rise by about €0.15 (0.30 lev), assuming no additional markup by manufacturers or retailers.
Higher Excise for Cigars and Smoking Tobacco
The excise on cigars and cigarillos will increase from €202.47 to €212.70 per 1,000 units.
Meanwhile, the tax on smoking tobacco will rise from €113 to €121.96 per kilogram.
Adjustments for Heated Tobacco Products
Heated tobacco products will also see a higher tax rate — from €204.74 to €214.74 per kilogram, adding roughly €0.07–0.08 to a 20-stick pack.
The same excise rate applies to non-nicotine sticks used in heating devices.
Increased Excise on Vape Liquids
The excise on vape liquids will increase from €0.23 to €0.25 per milliliter, regardless of whether they contain nicotine.
This means a 2 ml vape will cost about €0.05 more, while a 20 ml bottle will rise by around €0.50.
Transition Period for Old Excise Bands
In early 2026, products with old excise bands will remain on the market and can be sold at previous prices until stocks are exhausted.
Revenue Impact and Government Expectations
According to the Ministry of Finance, the new excise rates are projected to generate €130 million in additional budget revenue in 2026, plus about €26 million in VAT, as VAT is calculated on the total retail price, including excise.
