The new structure has been discussed with tobacco companies, and we have agreed upon it. The new structure provides a proportional component of 22% and a specific component of €48.5, resulting a total tax of €74 per 1000 cigarettes”, said Iordache.

The state secretary stressed that this increase is not a consequence of the recent changes in the Fiscal Code, but of the calendar agreed with the European Union, after Romania’s accession to the European community, in an effort to narrow the differences in price levels of tobacco products and to ensure stability of budgetary resources for Member States.

“Any modification in excises does not arise from the recent changes to the Fiscal Code, but from a calendar, inserted in the Fiscal Code, after Romania’s accession to European Union”, said Gratiela Iordache.

Romania has imposed a minimum excise tax of €57/1,000 cigarettes in April this year, and will raise it to €64/1,000 cigarettes as of September 1. The minimum excise duty will be €74/1,000 cigarettes starting January 2010. However, under the accession treaty, Romania has committed to impose an excise duty €74/1,000 cigarettes as of July 1, 2010.