A series of measures included in Bulgaria's 2026 State Budget took effect on August 1, bringing higher prices for cigarettes and road vignettes, increased social security thresholds, revised family benefit eligibility rules, and new regulations for gambling promotion.
One of the most noticeable changes for consumers is the increase in tobacco excise duties. The excise tax on cigarettes has risen from €113.51 to €120 per 1,000 cigarettes, adding approximately €0.13, excluding VAT, to the price of a pack. The government has already scheduled further increases, with the rate set to reach €126 per 1,000 cigarettes from March 1, 2027, and €132 from January 1, 2028.
Excise duties on other tobacco products have also increased. Smoking tobacco now carries a tax of €130 per kilogram, up from €121.69, while the excise on heated tobacco products has risen from €214 to €225 per kilogram. According to the Ministry of Finance, the accelerated timetable reflects both the need to boost budget revenues and ongoing European Union discussions on raising minimum tobacco taxation levels. The ministry expects the higher excise duties and related VAT revenues to generate an additional €155.9 million in 2026.
