As of next year, the size of excise duties on tobacco, alcoholic and oil products could be set for a period of three years, IPN reports, with reference to the 2021 draft customs and fiscal policy document that was proposed for public debates.

According to the Ministry of Finance, this will enable to maximize the budget revenues and to gradually reduce consumption of tobacco and alcoholic products. Also, after the rise, the excise duties on the given products will be close to those used in the neighboring counties. The risks associated with smuggling will be this way diminished. The adjustment of excise duties is also a commitment stipulated in the Moldova – EU Association Agreement.

For example, the excise duty on filter cigarettes in 2021 will be 621 lei+13% for 1,000 pieces, but not more than 834 lei. In 2020, the excise duty was 540 lei+13, but not less than 700 lei. For 2023, the rate was proposed at 822 lei +13%, but not less than 1,103 lei.

The excise duties are planned to rise at a pace of 15% every year. The impact on the prices of cigarettes for end users is projected at 8% to 10%, while on the budget – at 200 million lei a year.

The excise duty on beer could increase from 2.63 lei per liter at present to 2.76 lei in 2021, 2.90 lei in 2022 and 3.05 lei in 2023. The duties will also rise on vermouths and ethyl alcohol.  The growth rate will be +5%, while the planned budget income is of plus 30 million lei.

The excise duty on a tonne of diesel fuel is expected to rise from 5,960 lei at present to 6,496 lei in 2021, 7,082 lei in 2022 and 7,719 lei in 2023. The growth rate would be 9%.

On gasoline, the excise duty will grow from 2,508 lei per tonne in 2020 to 2,734 lei in 2021, 2,980 lei in 2022, 3,248 lei in 2023.

On liquefied petroleum gas, the excise duty will rise from 3,580 lei per tonne at present to 3,759 lei, 3,947 lei and 4,144 lei during the next three years. The growth rate would be 5%.

The duty on crude oil will remain yet at 409 lei per tonne given that this is the minimum level stipulated in the EU Excise Directive.

The Ministry of Finance said that if the import prices of oil products are not significantly modified in 2021 – 2023, the price of gasoline for end users will rise by 3%, of diesel fuel by 2%, of liquefied petroleum gas by 1%. The net budgetary impact from the rise in excise duties on oil products was estimated at 233 million lei.