How is the cigarette price determined

Short title

Tax rates

ยงย 4.

(1) The tobacco tax is:

1.

for cigarettes

a)

if the tobacco tax liability arises after March 31, 2018 and before April 1, 2020, 37.5% of the retail selling price (Section 5) and 58 euros per 1,000 pieces;

b)

if the tobacco tax liability arises after March 31, 2020 and before April 1, 2021, 36% of the retail selling price and 63 euros per 1,000 pieces;

c)

if the tobacco tax liability arises after March 31, 2021 and before April 1, 2022, 34.5% of the retail selling price and EUR 68 per 1,000 pieces;

d)

if the tobacco tax liability arises after March 31, 2022, 33% of the retail selling price and 73 euros per 1,000 pieces;

2.

for cigars and cigarillos 13% of the retail price, but at least 100 euros per 1,000 pieces;

3.

for fine cut

a)

if the tobacco tax liability arises after March 31, 2018 and before April 1, 2020, 56% of the retail price, but at least 110 euros per kilogram;

b)

if the tobacco tax liability arises after March 31, 2020 and before April 1, 2021, 56% of the retail price, but at least 120 euros per kilogram;

c)

if the tobacco tax liability arises after March 31, 2021 and before April 1, 2022, 56% of the retail price, but at least 130 euros per kilogram;

d)

if the tobacco tax liability arises after March 31, 2022, 56% of the retail price, but at least 140 euros per kilogram;

4.

for other smoking tobacco 34% of the retail selling price;

5.

for tobacco for heating

a)

if the tobacco tax liability arises after March 31, 2019 and before April 1, 2020, 110 euros per kilogram of tobacco;

b)

if the tobacco tax liability arises after March 31, 2020 and before April 1, 2021, 123 euros per kilogram of tobacco;

c)

if the tobacco tax liability arises after March 31, 2021 and before April 1, 2022, 136 euros per kilogram of tobacco;

d)

if the tobacco tax liability arises after March 31, 2022, 149 euros per kilogram of tobacco.

(2) For cigarettes, the unit-related tax component is levied for two cigarettes if the tobacco rod, filter and mouthpiece are not included and are more than 8 cm in length, but no more than 11 cm. If the tobacco rod, filter and mouthpiece are not included, are more than 11 cm in length, the piece-related tax portion will also be charged for every additional 3 cm in length.

(3) If the tobacco tax burden per 1,000 cigarettes in a price category is below 98% of the total tobacco tax burden on cigarettes at the weighted average price (Paragraph 4) or below 150 euros per 1,000 cigarettes, the tobacco tax for this price category is 98% of the total Tobacco tax on cigarettes at the weighted average price, but at least 150 euros per 1,000 pieces. Paragraph 7, last sentence, applies.

(4) The weighted average retail price of cigarettes is calculated from the total value of all cigarettes released for tax free circulation on the basis of the retail price including all taxes, divided by the total amount of cigarettes released for tax free circulation.

(5) The weighted average retail sale price of fine cut is calculated from the total value of fine cut tobacco released for tax purposes on the basis of retail sale prices including all taxes, divided by the total amount of fine cut tobacco released for tax purposes.

(6) The weighted average retail sale price of tobacco for heating is calculated from the total value of the tobacco for heating released for tax use on the basis of the retail sales price including all taxes, divided by the total amount of tobacco released for tax free circulation in kg , calculated.

(7) The Federal Minister of Finance has until March 1 of each year

a)

the weighted average price determined on the basis of the data on all cigarettes released for tax purposes in the previous calendar year in accordance with Paragraph 4,

b)

the weighted average price determined on the basis of the data on all quantities of fine-cut tobacco for self-rolled cigarettes released for tax purposes in the previous calendar year according to Paragraph 5,

c)

the weighted average price determined on the basis of the data on all quantities of tobacco for heating released in the previous calendar year in accordance with Paragraph 6,

In each case rounded up to four decimal places, to be announced in the official gazette of the Wiener Zeitung, provided that it has changed compared to the last published one. The newly determined weighted average prices apply from April 1st of the current calendar year and are to be used as the basis for the calculations of tobacco tax for cigarettes or fine cut for which the tobacco tax liability arises before April 1st of the year for which a new one determined weighted average price is announced.

(8) The Federal Minister of Finance is authorized to regulate the procedure to be followed in determining and announcing the weighted average prices in accordance with Paragraphs 4 to 7 by ordinance.

24.03.2020

NOR40218583