sign up

< Back to Heated Tobacco Products Tax Gap Map

Tax Gap of Heated Tobacco Products in Montenegro

The Republic of Montenegro has amended its excise tax law to include heat-not-burn tobacco.

Article 49a of the revised excise tax law defines heat-not-burn tobacco as a tobacco product “intended for inhaling of vapor without the burning process.” The taxable base of heat-not-burn tobacco was set as the weight of the tobacco mixture expressed in kilograms. The rate of tax per kilogram is equal to 40% of the minimum excise tax on 1000 cigarettes sold at the weighted average retail price.
Article 49a (2) states that “the excise tax for the heat-not-burn tobacco shall be paid per kilogram of tobacco mixture in the amount of 40% of the minimum excise tax on 1,000 pieces of cigarettes set for the category of the weighted average retail price of cigarettes (WAP).”

Article 50(b) specifies that “The average weighted retail price of cigarettes is the ratio of the total value of all cigarettes released for free circulation at retail prices, with the total quantity of all cigarettes released for free circulation in the previous year.” It is determined by the government and published in the "Official Gazette of Montenegro". The tax excise on heat-not-burn tobacco became effective in July 2017. Since 2018, the WAP has been set at EUR 2.1 per 1000 sticks. As a result, the excise tax for heated tobacco was set at EUR 26.21 per kilogram in 2020 and increased to EUR 26.98 per kilogram in 2021.

As of 2020, the specific excise tax on cigarettes was EUR 33.5 per 1000 sticks and an ad-valorem tax of 30.5% of the retail price. In 2021, the specific excise tax on cigarettes increased to EUR 37 per 1000 sticks and an ad-valorem tax of 29% of the retail price.

Sources

Last Updated Feb. 22, 2021