Tobacco excise duty increases by 250 lek/kg - New calendar applies in 2027, higher prices
Smokers are facing increased pack prices. The increase comes as a result of the tobacco excise tax calendar, which was approved in 2022 and provided for a 5-year schedule for its progressive change, with the aim of discouraging smoking in the country.
January 2026 is the last year that this calendar will be applied and the excise tax on tobacco will increase by an average of 250 lek per kg, which is also reflected in the final selling price, by about 20-30 lek.
Until December 31, 2025, the excise duty on cigarettes or cigars containing tobacco was 7,500 lek / 1,000 cigarettes, while from January 1, 2026, the excise duty will increase to 7,750 lek / 1,000 cigarettes.
Meanwhile, the Medium-Term Revenue Strategy 2024-2027 foresees the drafting of a new calendar for increasing the excise duty level on tobacco and its sub-products for the period 2027 and onwards.
The document argues that in our country, for some excisable goods such as tobacco, the combined taxation scheme that includes both a specific excise tax rate per product unit, but also a percentage excise tax rate on the selling price of the product, is not applied.
The drafting of a new calendar for increasing the excise duty level on tobacco and its by-products for the period 2027 and beyond aims to align it with the excise duty level applied in the EU, aiming at unifying the excise duty level between tobacco and its by-products.
One in four adults in Albania smokes, or in other words 25 percent of the adult population, causing themselves health and economic damage. According to a study conducted by the civil society organization DSA (Development Solutions Associates), our country has a high smoking rate with almost half of men or 42 percent and 7 percent among women.
Excise tax accounts for about 11% of annual tax revenues. About 35% of excise tax revenues are provided by tobacco by-products.
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