Under the excise duties act, the excise for cigarettes needs to be raised from the minimum 57% of the weighed average retail price per packet to at least 60% as of 1 January 2014.

Based on excise charged between October 2012 and September 2013, the weighed average retail price as on 1 January 2014 was set at EUR 3.27 per a packet of 20 cigarettes.

Due to the increase in the average price, excise also needs to be raised. As of 1 January, excise for 1,000 cigarettes will increase to EUR 101 from the minimum of EUR 97 now.

At 22% VAT and the new excise, the duties on cigarettes from the weighed average retail price will amount to EUR 2.61 per pack of 20 cigarettes, according to estimates from the Finance Ministry.