Sofia — Cigarette prices across Bulgaria are set to rise starting January next year, following the government’s approval of higher excise duties in the 2026 state budget. The move marks the beginning of a four-year plan to align Bulgaria’s tobacco taxes with the average levels seen across the European Union.
Until now, Bulgaria has maintained some of the lowest excise rates in the bloc, particularly for alternative smoking products such as heated tobacco and e-cigarettes. Officials say the increase will not only harmonize national taxation with EU standards but also generate additional revenue for the state.
Under the new amendments, the excise duty on traditional cigarettes will rise from €107.57 to €113 per 1,000 pieces. After adding the 20% value-added tax (VAT), the average retail price of a cigarette pack is expected to increase by around 30 stotinki, assuming manufacturers and retailers keep their current profit margins.
Heated tobacco products will also become more expensive. The excise rate for them will increase by €10 per kilogram, leading to an approximate 15-stotinki rise per pack of 20 sticks. Even non-nicotine variants will be subject to the same rate adjustment.
E-cigarette users will feel the impact as well. The excise duty on e-liquids will go up from €0.23 to €0.25 per milliliter. This means a disposable vape containing 2 ml of liquid could cost about 10 stotinki more, while a 20 ml refill bottle might see an increase of nearly one lev.
Other tobacco categories are not exempt. The tax on cigars and cigarillos will be set at €212.70 per 1,000 pieces, and the rate for smoking tobacco will rise to €121.96 per kilogram.
The Ministry of Finance said products with old tax labels will remain available at current prices until existing stocks are sold out. Afterward, all tobacco goods distributed must reflect the updated excise rates.
According to ministry projections, the measure is expected to bring in €130 million in additional revenue from excise taxes and another €26 million from VAT in 2026.
Officials say the gradual adjustment will prevent abrupt market disruptions while ensuring Bulgaria fulfills its obligations under EU fiscal convergence rules.
The government hopes the price rise will also contribute to discouraging smoking, particularly among young people, while improving public health outcomes over the long term.