Bulgaria’s Ministry of Finance has confirmed a phased increase in excise duties on all tobacco and nicotine products, including e-cigarettes and heated tobacco, starting in the new year 2026. This fiscal adjustment, approved under the 2025 state budget, aims to raise state revenues while gradually aligning Bulgaria’s historically low tobacco taxes with broader European Union standards.
Over the past decade, Bulgaria maintained low excise rates to keep retail prices down, leaving it with the lowest tobacco tax rates in the EU. The new policy reverses this trend with a gradual, four-year tax hike. The specific tax adjustments include:
| Product Type | Old Excise Rate | New Excise Rate | Estimated Price Increase |
|---|---|---|---|
| Traditional Cigarettes | €107.57 per 1,000 pcs | €113.00 per 1,000 pcs | ~€0.15 per pack of 20 (incl. VAT) |
| Heated Tobacco (inc. Nicotine-Free) | €204.74 per kg | €214.74 per kg | ~€0.07 to €0.08 per pack of 20 |
| E-cigarette Liquids (inc. Nicotine-Free) | €0.23 per ml | €0.25 per ml | ~€0.05 (2ml tank) / ~€0.50 (20ml bottle) |
| Smoking Tobacco | €113.00 per kg | €121.96 per kg | Varies by package size |
The Ministry of Finance projects that these excise adjustments will generate an additional €130 million for the state budget in 2026. An additional €26 million is expected from Value Added Tax (VAT), which is calculated on the final retail price. Existing stock with older tax stamps will be sold at current prices until depleted.
