The Indirect Taxation Authority has set new minimum excise rates on cigarettes and smoking tobacco, to take effect from 1 January 2027, while leaving the specific and ad valorem duties on cigarettes unchanged.
Bosnia and Herzegovina’s Indirect Taxation Authority (ITA) has adopted higher minimum excise duties on manufactured tobacco, to apply from 1 January 2027. The ITA Governing Board took the decision on 26 October 2026.
New rates
The overall minimum excise duty on cigarettes will rise to BAM 197.50 per 1,000 cigarettes (EUR 100.98), up from BAM 188.50 (EUR 96.38) in 2026. This equals BAM 3.95 per pack of 20 cigarettes.
The specific excise duty on fine cut tobacco and other smoking tobacco will increase to BAM 158.00 per kilogram (EUR 80.78), from BAM 150.80 (EUR 77.10) in 2026. The duty is set at 80% of the minimum excise duty on cigarettes.
Unchanged duties
The specific excise duty on cigarettes stays at BAM 82.50 per 1,000 cigarettes (EUR 42.18), or BAM 1.65 per pack of 20. The ad valorem excise duty also remains at 42% of the retail selling price.
Publication and compliance
The decision will be published in the “Official Gazette of Bosnia and Herzegovina”. According to the Cabinet of the Minister of Finance and Treasury in the Council of Ministers, the ITA website will also carry the decision. Producers and distributors will find instructions there on their obligations and deadlines for submitting stock inventory lists, as well as on any new setting of retail prices.
Other decisions
At the same electronic session, the board kept the compensatory interest rate unchanged at 12% for 1 July to 31 December. It also adopted amendments to the Rulebook on the Payment of Indirect Taxes and Other Revenues and Fees Collected by the ITA. The amendments cover the codes of new organisational units at border crossings.
