Bosna i Hercegovina
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Босна и Херцеговина
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Change in excise duty on tobacco products for 2024

29.12.2023 | News

Delivery of census lists and payment of the excise duty difference according to the Decision on determining the specific and minimum excise duty on cigarettes and the amount of excise duty on smoking tobacco for the year 2024.

We remind all taxpayers and other persons involved in the sale of cigarettes and smoking tobacco that the Decision on determining the specific and minimum excise duty on cigarettes and the amount of excise duty on smoking tobacco for the 2024 (“Official Gazette of BiH”, number: 87/23) regulated that from January 1, 2024, the following excise taxes will be paid on cigarettes and smoking tobacco:

   – proportional excise tax at the rate of 42% of the retail price of cigarettes;

   – specific (fixed) excise duty in the amount of BAM 1.65 for a pack of 20 cigarettes;

   – excise duty on smoking tobacco in the amount of BAM 138 40 per kg.

In this regard, we note that the duties of the stock list of tobacco products, the deadlines for the delivery of lists, the calculation and payment of the difference in excise duty for each change in retail prices are prescribed by the provision of Article 45, paragraph (3) of the Law on Excise Taxes in Bosnia and Herzegovina, which also applies to all changes in cigarette prices on January 1, 2024.

The decision regulates that taxpayers are also other persons involved in the sale of cigarettes, who are subject to the payment of the minimum excise tax (i.e. if on 01.01.2024, they have in stock cigarettes with a price lower than BAM 4.30 per pack of 20 pieces cigarettes), obliged to list the stocks of cigarettes on 01.01.2024. submit census lists to the competent ITA regional center by January 7, 2024 with the calculated excise tax difference, and pay the excise tax difference by January 17, 2024.

The decision also regulates that taxpayers and other persons involved in the sale of smoking tobacco are obliged to list their tobacco stocks on January 1, 2024, submit census lists to the competent ITA regional center by January 7, 2024 with the calculated excise tax difference, and pay the excise tax difference by January 17, 2024.

Concerning the aforementioned, we point out that according to the provisions of the Law on Excise Taxes in Bosnia and Herzegovina and the decision, the obligation to submit census lists and pay the difference in calculated excise duty exists:

  • if the total excise duty calculated on cigarettes is less than the minimum prescribed by this decision (for cigarettes that may have a lower price than BAM 4.30 per pack of 20 pieces), regardless of whether on 01.01.2024 the price of these cigarettes changes
  • on cigarettes in stock on 01.01.2024. where the price increases,
  • of smoking tobacco in stock on 01.01.2024.

Following the above, if the total excise duty on cigarettes (proportional + specific) calculated according to the above-mentioned rates is higher than the minimum excise duty, (BAM 3.46 per pack of cigarettes or pack of 20 pieces, i.e. proportional to the number of pieces in a pack other than 20 pieces), and for which there is no price increase on 01.01.2024. there is no obligation to submit a census list, bearing in mind that the specific excise duty on cigarettes remained unchanged according to this decision and that only the minimum excise duty on cigarettes was changed. On the other hand, the obligation to submit a census list and pay the difference in excise duty on smoking tobacco stocks on January 1, 2024. exists for taxpayers and other persons who trade in smoking tobacco, regardless of whether the price of this excise product changes.

Tobacco products for which the difference in excise duty has been paid can be sold until stocks last at the new retail prices, which must be displayed in a prominent place in the retail establishment.

Census lists (with entered formulas for excise duty calculation) can be downloaded here:

  • Inventory list of cigarette stocks 01-01-2024 and calculation of excise duty difference
  • Inventory list of tobacco stocks for smoking 01-01-2024 and calculation of excise duty difference