TABLE 1. Types of excises applied on HTPs, 2022.
Type of excise |
Countries (or territory) |
---|---|
Specific excise |
|
Base unit: kg of tobacco |
Albania, Austria, Belarus, Bosnia and Herzegovina, Bulgaria, Canada,a Croatia, Cyprus, Czechia, Denmark, Estonia, Greece, Iceland, Indonesia,b Ireland, Kazakhstan, Kyrgyzstan, Latvia, Lithuania, Luxembourg, Montenegro, Morocco, Netherlands, New Zealand, North Macedonia, Pakistan, Romania, Russian Federation, Serbia, Slovakia, Slovenia, Sweden, United Kingdom |
Base unit: sticks |
Armenia, Azerbaijan, Hungary, Italy, Japan, Jordan, Peru, Philippines, Republic of Korea, Republic of Moldova,c South Africa, Ukraine,c United States of Americad |
Ad valorem excise |
|
Base: retail price |
Costa Rica, Ecuador, Paraguay,e Spain, Switzerland |
Base: retail price exclusive of excise and VAT |
Saudi Arabia,e United Arab Emiratese |
Mixed system |
|
Base unit for specific: kg of tobacco |
Finland, France, Germany, Poland, |
Base unit for ad valorem: retail price |
Portugal |
Base unit for specific: sticks |
Colombia,e Georgiae |
Base unit for ad valorem: retail price |
|
Base unit for specific: sticks |
Israel,e Palestinian territoriese |
Base unit for ad valorem: wholesale price |
|
Notes:
This refers to the federal tax applied on HTPs in Canada. Additionally, provinces have opted to include additional specific excise taxes. Most provinces include another specific excise tax that uses gram as a base unit, except for British Columbia, where a specific excise tax per stick with the same rate as cigarettes is implemented, and Saskatchewan, which implements a specific excise tax per stick with a lower rate than cigarettes.
Starting January 2022, the tax structure changed in Indonesia from an ad valorem imposed on the price of HTPs to a specific tax based on the content in tobacco weight.
In the Republic of Moldova and Ukraine, the rate is the same as the minimum excise on cigarettes per 1 000 pieces.
This refers to the federal tax applied on HTPs in the United States of America. A number of states also apply a state-level excise tax on those products.
In Colombia, Georgia, Israel, the Palestinian territories, Paraguay, Saudi Arabia, and United Arab Emirates, the applicable excise rate is the same as the one applied for cigarettes.
Sources: WHO Technical Manual on Tobacco Tax Policy and Administration 2021 (4). TobaccoIntelligence, November 2021 (13). Indonesia’s Ministry of Finance regulation 193/PMK.010/2021 (14). Taxes on heat not burn cigarettes in Canadian jurisdictions (15). Paraguay Law 6380 of 2019 (16). Ecuador Internal Tax Regime Law 2020 (17). Costa Rica Gazette 12 of 20 January 2022 (18). Peru Ministerial Resolution 035 of 2021 (19).