Slovakia Raises Consumption Taxes on Beer and Cigarette

According to relevant Slovak media, the Slovak Government decided on Sept. 22, 2010 to raise consumption taxes on beer and cigarette.

As to beer, the tax rates per hectoliter shall rise from EUR 1.65 (for large breweries) and EUR 1.22 (for small breweries) respectively to EUR 2.45 and EUR 1.82; and the tax rate per half-liter with 4% alcoholicity shall increase by 5 euro cents on average. Such moves are expected to increase Slovak revenue by EUR 14.90 million (for 2011) and EUR 25.50 million (for 2012).

Additionally, as per the EU's requirement for the consumption tax on cigarette to gradually reach 60% of cigarette's weighted average price before 2014, Slovakia has the plan to raise its consumption tax on cigarette, which is expected to increase its revenue by EUR 15.90 million (for 2011) and EUR 21.20 million (for 2012).