The Government of Montenegro has approved a draft law amending the Law on Excise Duties, whichincreases excise dutieson alcoholic beverages, tobacco, and products with added sugar.
If the Parliament of Montenegro adopts this law, prices for these goods will rise from July 1, 2021.
The law provides for an increase in the excise duty on finely cut tobacco from 45 to 55 euros per kilogram, while the excise tax on other smoking tobacco will be increased from 25 to 35 euros per kilogram.
For carbonated drinks with added sugar or other sweeteners or flavorings, including cocoa and ice cream, the excise tax will be increased from 25 to 35 euros per hectoliter. A new type of excise product is also planned to be introduced — excise duties on sugar, cocoa, and ice cream, which will be paid at a rate of 0.6 euros per kilogram.
The Government of Montenegro expects that the increase in excise duty on tobacco and tobacco products, as well as the introduction of a new excise product, will increase budget revenues by approximately 16.8 million euros.