sign up

< Back to Heated Tobacco Products Tax Gap Map

Tax Gap of Heated Tobacco Products in Romania

Heated tobacco products were introduced in Romania in 2015 with the launch of IQOS by Philip Morris International. In January 2016, Romania’s Fiscal Code was amended to create a new tax category for heated tobacco. Heated tobacco products are defined as “products which work by heating tobacco sufficiently to release an aerosol that can be inhaled, without the blended tobacco being combusted” (Article 439). A non-harmonized excise duty is applied to heated tobacco. For the fiscal year ending March 31, 2021 (FY 2020/21), the   specific excise tax is Lei 411.15 per kilogram of tobacco mixture. The tax rate is scheduled to increase to Lei 423,59 per kg in FY 2021/22.

Romania applies a mixed excise tax system to conventional cigarettes. During FY 2020/21, the specific excise tax is Lei 401.49 per 1000 sticks, the ad-valorem excise rate is 14% of the retail sale price, and the minimum excise is Lei 401.485 per 1000 sticks. The specific excise is set to increase to Lei 406.521 per 1000 sticks in 2021.


Sources

Last Updated Feb. 24, 2021