Increase of Excise Taxes by 8% for Certain Products

Increase in excise taxes

The Law prescribes an increase in excise taxes by 8% effective from 1 October 2023 for:

• petroleum derivatives;
• coffee;
• alcoholic beverages;
• tobacco products;
• liquids for electronic cigarette refills.

New excise taxes and excisable goods

One of the crucial amendments to The Law is the introduction of a new excise tax for natural gas for final consumption for motor vehicles and heating, with the taxation commencing on 1 January 2025.

The Law has also introduced a new excisable product – nicotine pouches, which will be subject to excise duties starting from 1 January 2024.

E-excise system

The Law introduces the e-excise system, a centralized information system managed by the Ministry of Finance containing information related to:

• excisable products;
• excise duty taxpayers;
• participants in the supply chain.

The new system will allow electronic applications for the issuance of control excise stamps, permits for excise warehouses, and business process management. Obligation to use the e-excise system will come into force on 1 October 2024.

Additionally, the Law introduces control stamps with QR codes to improve tracking of excisable products, which will come into force on 1 January 2025.

Registry of importers

Finally, the Law also introduces a registry of importers of alcoholic beverages and coffee, which will be operated by the Customs Administration. The importers of alcoholic beverages and coffee will be obliged to register in the registry before releasing alcoholic beverages and coffee into free circulation. The bylaw which will regulate the registry in more detail should be adopted by 14 June 2024.

The information in this document does not constitute legal advice on any particular matter and is provided for general informational purposes only.

By Branimir Rajsic, Senior Consultant, Katarina Tomic Senior Associate, Milica Mijatovic Associate, Karanovic & Partners