sign up

< Back to Heated Tobacco Products Tax Gap Map

Tax Gap of Heated Tobacco Products in Moldova

The Republic of Moldova amended the Tobacco Control Act to include new categories of tobacco products. The amendment was adopted on July 26, 2019 (Law LP97/2019) and a new specific excise rate of for heated tobacco became effective on August 16, 2019. Under the law, heated tobacco products are defined as “aerosol of a tobacco product or a similar product/substances released as a result of using a device for heating a smokeless tobacco product or similar product that does not involve burning or smoldering process.”

Heated tobacco was initially taxed at MDL 610 per 1,000 units of tobacco sticks, effective August 16, 2019. The amendment and Annex No. 1163 provide for increases in the rate based on the following schedule:  

  • In 2020: MDL 700 per 1,000 sticks 
  • In 2021: MDL 834 per 1,000 sticks 
  • In 2022: MDL 959 per 1,000 sticks 
  • In 2023: MDL 1,103 per 1,000 sticks

Cigarettes are subject to a mixed excise system that includes an ad-valorem tax based on the retail price, a specific tax and a minimum total excise based on sticks. Since 2020, the ad-valorem is 13% of the retail price and will stay the same in the foreseeable future. The specific rates are scheduled to increase as follows in order to account for the CPI inflation:   

  • In 2020: MDL 540 per 1,000 sticks (specific excise) and MDL 700 per 1,000 sticks (minimum excise) 
  • In 2021: MDL 621 per 1,000 sticks (specific excise) and MDL 834 per 1,000 sticks (minimum excise) 
  • In 2022: MDL 715 per 1,000 sticks (specific excise) and MDL 959 per 1,000 sticks (minimum excise) 
  • In 2023: MDL 822 per 1,000 sticks (specific excise) and MDL 1,103 per 1,000 sticks (minimum excise)

Therefore, the excise rate on heated tobacco is effectively equal to the minimum excise on cigarettes.  

Sources

Last Updated Mar. 8, 2021