The Government of Andorra prepared the draft of the bill that presupposes the increase of tax for tobacco, on the approval of the Council. In accordance to the data of the Ministry for Finances of Andorra (Pyrenees), the bill increases the tax, collected from light and dark tobacco cigarettes and from light tobacco for industrial purposes, by 10%.
At the same time the government offers to keep the prices for cigars and dark tobacco for industrial needs at the same rate due to the inactivity of this market segment and low taxation for hookah tobacco. The Ministry for Economics of Andorra considers that the last consumption taxes increase provoked the decrease of compatibility of this product.
With reference to three leaders of tobacco market of the Principality of Andorra, the tax will be increased from 0.95 euro to 1.04 euro. The Government intends to diminish the price difference with France and Spain, meanwhile keeping commercial attractiveness.
The Government offered to review the bill and present it to the Parliament on April, 25.
See also Taxes in Europe
See also Taxes in Andorra VS Taxes in France
See also Taxes in Andorra VS Taxes in Spain
