Excise duty on cigarettes to rise 5 percent in 2022

Cigarette packs.
Cigarette packs. Source: EBU/ERR

Excise duty on cigarettes is set to rise by 5 percent from January, the finance ministry says. Interest rates on tax arrears are to return to their pre-coronavirus crisis levels from January 2022.

The rate will rise from its current level of €145.60 per 1,000 cigarettes, to €152.85 per 1,000, from January 2022, ministry spokesperson Siiri Suutre said.

Tax arrears interest rates will double next year, from the current 0.03 percent per day rate, to 0.06 percent per day, as things stand, though provisions are in place for reducing it by up to 50 percent in 2022 – and by up to 100 percent for the remainder of this year.

The previous Center/EKRE/Isamaa administration set the current, lower interest rate in May 2020 after a period of exemption altogether from March to May.

The rate could, through to the end of this year, also be eliminated by deferring tax debts, but this benefit has now been removed.

"No further [tax] changes are planned," Suutre said Thursday.


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Editor: Andrew Whyte

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