
The government plans to increase the excise tax on alcohol and tobacco products. Referring to the medium-term revenue strategy 2024-2027, a document which has been submitted for public consultation, it is evident that Albania applies excise duties with a specific rate per unit and that the level of excise duties on the main excise goods such as fuel and tobacco is generally lower than the excise duty levels applied by EU countries.
In the document it is argued that in our country, for some excisable goods such as tobacco, the combined taxation scheme is not applied, which includes a specific excise duty per product unit, but also a duty with an excise percentage on the selling price of the product. This combined scheme is applied in several countries. For this reason, the strategy predicts that in the following years, after the end of the 2022-2026 excise tax increase calendar, a new calendar will be designed which will take into consideration the taxation scheme that combines the fixed quota system with the value system.
Referring to the document, among the intended changes for excise duties is the unification of the excise duty level for the categories of goods that still have differentiated excise duties. Specifically, the document states that "the wine excise tax for small producers is about one third of the regular excise rate applied to large producers. The level of excise duty for large producers is not considered high, and it is unlikely that the unification of excise duty at a high level will create problems for operators and product sales prices.
It is also foreseen to reduce the amount of alcoholic beverages that are not taxed with excises that are used for personal consumption. In this case, the amount of alcoholic beverages subject to excise duty that are treated as self-consumption by the producers and are not charged with excise duty will be reviewed, this is mainly for brandy and wine produced in the country.
On the other hand, it is also foreseen to draw up a new calendar for the increase in the level of excise duty on cigarettes and tobacco for the period 2027 and beyond.
Starting from 2022, a new 5-year schedule has been approved for increasing the level of excise duty on cigarettes and tobacco. The drafting of a new calendar for increasing the level of excise duty on tobacco and its sub-products for the period 2027 and following, aims to align with the level of excise duty applied in the EU, aiming at unification of the level of excise duty between tobacco and by-products his.