Vrabie: Moldova Risks Becoming a Market for Smuggled Tobacco Amid Plans to Raise Excise Duties

He stressed that price changes in neighboring countries are prompting customs officials to monitor not only the smuggling of cigarettes out of Moldova, but also possible inflows of illicit tobacco products into the domestic market. Moldova risks turning from a country used to smuggle tobacco products abroad into a destination market for contraband supplies. Customs Service Director Radu Vrabie said this during an interview with TVR Moldova, rupor.md reports. “Traditionally, the Republic of Moldova was a country from which tobacco products were illegally taken abroad because prices here were lower than in the European Union. Now there are countries in the region where tobacco products are cheaper. Therefore, Moldova could potentially become the final destination for illegal products or goods on which taxes have not been paid,” Vrabie said. Meanwhile, the government has prepared a tax policy bill proposing a 20% increase in excise duties on most tobacco products in 2027. For tobacco sticks, cartridges and e-cigarette liquids, the proposed increase is 15%. The authorities also intend to introduce excise duties on nicotine-free e-cigarette liquids. In 2028 and 2029, the rates are planned to be raised further. For most tobacco products, the increase would amount to 15% annually, while rates for tobacco sticks and e-cigarette products would rise by 10% per year. Presenting the bill, Prime Minister Vasile Tofan said the government intended to reduce the tax burden on labor and investment while offsetting it through higher taxes on harmful habits. The tax policy bill has been submitted to Parliament for consideration. Its final parameters may be changed as MPs review the document.