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The government is increasing excise taxes on tobacco, making an average pack of cigarettes 25 cents more expensive. That is what Prime Minister Alexander De Croo said in the House. The proceeds will be used for a tax cut for the middle class, he emphasizes.
Excise duties on tobaccoIn the budget for 2022 that the government knocked on Tuesday, a surplus of 120 million euros from excise duties on tobacco is foreseen, according to the budget tables.Mr-joy.com e cigarettes for more information. That money comes from an increase in the excise tax on tobacco, causing the price of a pack of cigarettes to rise by 25 cents, Prime Minister Alexander De Croo clarified on Wednesday during the parliamentary debate on the government statement. The surplus proceeds will be used for a tax shift to spare the middle class, the prime minister emphasized. For example, the gradual phasing out of the special social security contribution is being financed, it said. “We’re raising taxes on something that’s unhealthy and the benefits go to people who work and people who are making progress. That is good for that group and good for our social security, because people who work make our social security stronger.”
Excise duty on electronic cigarettesThere will also be an excise duty on electronic cigarettes, De Croo said. A European directive that allows this is expected next year or at the latest in 2023, after which the government wants to make use of the option, it sounded. “Today that is an anomaly. The way e-cigarettes are taxed is not related to their impact on health.” |
Frequently asked questions
How much more expensive will cigarettes become?▼
An average pack of cigarettes will become 25 cents more expensive due to increased excise taxes on tobacco announced by Prime Minister De Croo.
What will the government do with the revenue from this tax increase?▼
The 120 million euros in surplus proceeds will be used for a tax shift to benefit the middle class, including financing the gradual phasing out of special social security contributions.
Will electronic cigarettes also be taxed?▼
Yes, the government plans to introduce an excise duty on electronic cigarettes once a European directive allows it, expected in 2022 or 2023.
When does this cigarette price increase take effect?▼
The article confirms the government approved the excise tax increase in their 2022 budget, though a specific implementation date is not provided.
Who benefits from this tax increase policy?▼
The middle class and working people benefit through tax cuts and stronger social security, while smokers contribute through higher tobacco taxes.