Serbia

Background: Serbia’s Excise Law was amended in 2015 to include a new type of product to the “Tobacco products” category – tobacco products that are heated but not combusted during use.

A new Article 10 in Serbia’s Excise Law describes the mechanism for calculating the rate of tax to apply to heated tobacco products:

• Excise tax shall be paid on non-combusting tobacco per one kilogram of tobacco mixture, in the amount of 40% of minimum excise tax per 1000 cigarettes which is equivalent to 100% of the excise yield calculated on the weighted average price of cigarettes.
• The current rate of excise per kg is determined by multiplying the current excise yield per 1000 cigarettes sold at the Weighted Average Price (RSD 6671.5) by 0.40
  The current rate was revised upward from RSD 2558.2 per kg in July 2016.