from January 40 cents more per pack, 10 cents more for cigarettes – Corriere.it

from January 40 cents more per pack, 10 cents more for cigarettes - Corriere.it

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Starting from 1 January 2023, the government will reduce excise duties on cigarette packets, but will increase those on finely chopped tobacco. An amendment presented to the budget law under discussion in the House Commission proposes to reduce the cost of cigarettes, which generally have a price of 5 euros, from 20 to 10-12 cents. According to estimates, the operation will cause the state to lose around 48 million euros, which the executive intends to recover by increasing the price of tobacco pouches for do-it-yourself cigarettes up to 40 cents.

Reviewed increases in cigarettes

After two years without tax increases, the prices of cigarettes will therefore be reviewed with a three-year plan: from the current 23 they should have gone to 36 euros for a thousand pieces in 2023, to 36.50 euros for the same quantity in 2024 and, finally, at 37 euros starting from 2025. Which would translate into an increase of 20 cents per package in 2023 and an additional 10-15 cents in subsequent years. Increases that would also have involved cigarettes with heating devices, with about 10-15 cents more over the next four years. Government estimates have calculated that the whole operation would have led to a profit of more than 100 million euros. The changes reduce prices as follows: in 2023 it will be 28 euros (instead of 36) for a thousand cigarettes, 28.20 euros (instead of 36.50) in 2024 and 28.70 euros (instead of 37) in 2025. Yes This also reduces the revenue forecast: minus 48.61 million euros in 2023, minus 42.37 million for 2024 and minus 46.6 million euros starting from 2025.

Cost of tobacco

The government intends to balance the negative balance by increasing the cost of shredded tobacco packages. The basic rate will rise from 59 to 60% starting from 2023, with a minimum excise duty that goes from 130 to 140 euros per kilogram. By adding this change to the maneuver, the Government Accounting Office expects a higher revenue of 50.1 million euros starting from next year, also taking into account a possible drop in sales, as was recorded in the first ten months of last year (-3.3%). The measure should have an overall neutral cost, of approximately 1.5 million euros in the first year, 7.7 million in the second and 3.5 million in 2025.

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