Andorra Mulls 10% Hike On Tobacco Tax

Source from:  Global Tax News  04/18/2013

The Andorran Government has recently presented to the Governing Council a bill providing for a rise in the tax on tobacco.

According to the Andorran Government, the bill increases by 10% the tax levied on white and black tobacco cigarettes and on white tobacco destined for manufacture.

However, the Government has proposed that the price of cigars and black tobacco destined for manufacture be maintained. This is due to the stagnation of this sector of the market, and to the reduced taxation of water pipe tobacco. The last rise in consumption taxes reduced the competitiveness of this product, the Government explains.

Taking as reference the three cigarette market leaders, the tax will increase from EUR0.95 currently to EUR1.04. The Government aims to reduce the price differential with Spain and France, while maintaining commercial appeal.

The Government has requested that the bill be examined as a matter of urgency, and submitted to parliament on April 25. Enditem