Cigarettes and all tobacco products to increase in price from 2026: new excise rates and expected effect

09.11.2025 | Economy

From January 2026, the prices of cigarettes and other tobacco products in Bulgaria will increase by about 30 stotinki per pack - the reason is the planned increase in excise duties according to European standards.

Снимка от Lindsay Fox, Wikimedia Commons (CC BY 3.0)

With the beginning of 2026, a new increase in excise rates on all tobacco products will come into force in Bulgaria - from traditional cigarettes and cigars to heated products and liquids for electronic cigarettes, including nicotine-free ones. The measure is part of a four-year plan to gradually equalize excise duties with those in the EU and is expected to significantly affect market prices.

According to the adopted changes, the excise duty for 1,000 cigarettes increases from 107.57 euros to 113 euros, and after the calculation of 20% VAT, a pack of cigarettes will become more expensive by about 30 stotinki (15 euro cents), if manufacturers and traders do not additionally increase the markups. For heated tobacco products, the excise duty increases by 10 euros per kilogram, which will lead to an increase in the price of a pack by about 7-8 euro cents. For electronic cigarettes, the excise duty on a 2 ml liquid increases by about 5 euro cents, and for 20 ml - by 50 euro cents.

The introduced changes provide that the unsold quantities with a banderole at the old rates will be sold until exhaustion. The forecasts of the Ministry of Finance are that the state will generate additional revenues of over 130 million euros in 2026. Only from VAT on the final price, the increase in revenues will reach 26 million euros more compared to the previous year.

The excise program provides for a gradual increase in rates every year until 2028, until the levels are aligned with the EU average. With this, the country will have the highest prices for tobacco products in the region - a change that aims to limit smoking and harmonization with European directives.