Price increases before entry into force
The last modifications in excise taxes that were approved recently in the Albanian parliament have been published in the “Official Journal” and entered officially in force this week, on the 27th of October. The new excise rates represent increases with as much as one fourth or half of the former rates, but the modifications have not touched all the product categories that suffer imposition of an excise tax. Petroleum and byproducts, perfumes, toilet, body and beauty care products, non-alcoholic drinks and light-bulbs do not suffer from any increases. Even in the categories of coffee, tobacco and alcoholic drinks some products will suffer from excise tax increases while others remain untouched.
Cigarettes: excise tax rises by one fourth
Tobacco and cigarettes are one of the products with excise tax increases. For each packet of cigarettes, 50 Albanian Lek (ALL), nearly 0.54 US Dollars will have to be paid. Formerly the excise tax on each packet was 40 Albanian Lek (ALL), nearly 0.43 US Dollars. The excise tax has been increased by one fourth.
Some alcoholic products or drinks have experienced even more important increases. Alcoholic drinks with alcoholic power compared to volume of over 12 %, from home or foreign producers with quantities of less than 20,000 hectoliters a year will have to pay 220 ALL per liter in excise tax, instead of the former 150 ALL. That makes almost 2.40 US Dollars to be paid in excise tax per liter, instead of almost 1.65 US Dollar.
Increases up to double
With a volume of over 20,000 hectoliters a year, for alcoholic drinks of over 12 %, from home or foreign producers 300 ALL (nearly 3.3 US Dollars) per liter in excise tax, instead of 200 ALL (nearly 2.2 US Dollars) formerly will have to be paid in excise tax. That makes an increase of almost half of its former value.
Drinks with alcoholic levels of less or up to 12 % to the volume, will have to pay 100 ALL (nearly 1.08 US Dollars) instead of 70 ALL (nearly 0.76 US Dollars).
Coffee and by-products range among other articles that have experienced excise tax increases. But within each category of articles that were concerned – coffee, drinks, tobacco – not all the sub-categories have increased.
Price increases before entry into force
Generally, the market had advance increases in the prices for these products. Such increases were visible in most selling-points during the last weeks and were already noted on the issue of the 20th of October of Gazeta Shqiptare. Though the modifications of excise tax rates on some products entered in force only on the 27th of October, the market had already made use of the argument and increased prices for these articles.
The government says that besides successive excise tax increases – two such increases in only a few months – Albania still lags behind other countries in the region as regards excise tax rates. But compared to Kosovo these rates are higher in Albania, reported Gazeta Shqiptare. In Kosovo, the excise tax for two coffee sub-categories is reported to be 0.30 Euros and 0.60 Euros – 38 Albanian Lek (ALL) and 77 Albanian Lek – respectively. For these same sub-categories the new excise taxes in Albania are 70 ALL (50 ALL formerly) and 140 ALL (100 ALL formerly).
