The following shall be subject to excise tax on tobacco goods:

  1. cigars and cigarillos
  2. cigarettes
  3. smoking tobacco, as follows:
    • fine cut tobacco for rolling cigarettes, and
    • other smoking tobacco.

Cigars and cigarillos are tobacco rolls intended for smoking, wrapped into an internal or both an internal and external covers, that are:

  • made exclusively of natural tobacco;
  • covered by an external cover made of natural tobacco;
  • covered by an external cover in a cigar color and an internal one, both made of homogenized and reconstructed tobacco, provided that at least 60% of the pieces of tobacco in them are of a length and width larger than 1.75 mm, that the external cover is wrapped in a spiral fashion, and that the cigar has a tip sharpened by 30% relative to the cigar axis, or
  • covered by an external cover in a cigar color and an internal one, both made of homogenized and reconstructed tobacco, provided that their weight per piece without filter and an addition for holding it into the mouth is 2.3 g or more, and provided that at least 60% of the pieces of tobacco in them are of a length and width larger than 1.75 mm and the width of their cover is 34 mm in at least 1/3 of the length of the roll.Weight per piece is the weight of 1000 pieces without filter and an addition for holding it into the mouth at the moment of creation of the excise tax.

Cigarettes shall include:

  • tobacco rolls directly intended for smoking and not constituting cigars or cigarillos in accordance with paragraph 2 of Article 41 of the Law on Excise Tax;
  • tobacco rolls and that are inserted into cigarette paper cover in a simple nonindustrial process, and
  • tobacco rolls wrapped into cigarette paper in a simple nonindustrial process.

Smoking tobacco (fine cut tobacco for rolling cigarettes and other smoking tobacco) is cut or otherwise crumbled, weaved (shredded) or pressed tobacco that may be smoked without any further industrial processing. Smoking tobacco constitutes tobacco waste when it is intended for smoking and retail trade and is not categorized as cigars or cigarillos in accordance with paragraph 2 or as cigars in accordance with paragraph 3 of Article 41 of the Law on Excise Tax.

Smoking tobacco shall be deemed fine-cut tobacco for rolling cigarettes if 25% per bundle of the pieces of tobacco are less than 1 mm wide. Smoking tobacco shall be deemed fine-cut tobacco even if 25% per bundle of the pieces of tobacco are wider than 1 mm and that are sold or intended to be sold for rolling cigarettes.

Smoking tobacco shall be deemed other smoking tobacco of paragraph (4) Article 41, with the exception of the fine-cut tobacco for rolling cigarettes of paragraph (5) of this Article 41 of the Law on Excise Tax.

 

Calculation Basis

Retail price is the individual price set by the manufacturer or importer as a trading price per piece for cigars, cigarillos and cigarettes and per kilogram for smoking tobacco.

In case only a price per pack is set, retail price shall be the price arising out of the price per pack and the contents of the pack.

The net weight at the moment of creation of the excise liability shall be applied in the calculation of the excise tax on smoking tobacco.

Manufacturers or importers also define the retail prices for goods disposed of without any fees. This price shall not be lower than the individual price of the corresponding tobacco products.

Manufacturers or importers shall report the retail price of the tobacco goods to the Customs Administration and shall publish it in the” Official Gazette of the Republic of Macedonia” prior to releasing the tobacco products into excise-free circulation at such defined prices.

 

Combined Excise Tax

Excise tax on cigars and cigarillos shall amount to 21.37 denars per piece and 0% of the retail price.

Excise tax on cigarettes Law shall amount to 1.353 denars per piece and 9% of the retail price. In case the combined excise tax is below the amount of 1.553 denars per piece, the minimum excise tax in this amount shall apply. As of 1 July 2014 and by and inclusive of 1 July 2015, the rates of the specific and minimum excise tax on cigarettes shall be increased by 0.15 denars per piece at 1 July of each year.  As of 1 July 2016 and by and inclusive of 1 July 2023, the rates of the specific and minimum excise tax on cigarettes shall be increased by 0.20 denars per piece at 1 July of each year.

Excise tax on smoking tobacco as fine-cut tobacco shall amount to 1,500.00 denars per piece and 0% of the retail price. As of 1 July 2014 and by and inclusive of 1 July 2023, the rates of the excise tax on smoking tobacco as fine-cut tobacco shall be increased by 50 denars per kilogram at 1 July of each year.

Excise tax on smoking tobacco as other tobacco shall amount to 1,350.00 denars per piece and 0% of the retail price.