NATIONAL – Cabinet plans to increase excise duties on alcohol and tobacco. The government wants to further increase the tax (the so-called excise duty) on alcohol and tobacco. For example, from January 1, 2024, a case of beer will become €0.50 more expensive. A pack of cigarettes will cost approximately €10 from April 1, 2024. The House of Representatives and Senate still have to decide on the excise tax increase.
Objective: collect extra money to support purchasing power for lower incomes
The government wants to achieve two goals with the further increase in taxes on alcohol and tobacco.
First, the government wants to ensure that there is sufficient money to combat poverty and improve the purchasing power of people with a lower income. These additional expenses will be partly financed by windfalls in 2024. But it is also necessary to collect taxes in a different way. An additional increase in excise duties on alcohol and tobacco is one of those ways.
In addition, the government also wants to discourage the use of alcohol and tobacco for health reasons. The government’s policy is aimed at ensuring that no young person will start smoking by 2040.
Proposal: excise duty on alcohol increased from January 1, 2024 and excise duty on tobacco increased from April 1, 2024
The increase in excise duties will take effect on January 1, 2024 (alcohol) and April 1, 2024 (tobacco). Sellers of tobacco products thus have time to use up old stock and replace the excise stamps on the products.
The result: alcohol and tobacco become more expensive
The excise duty on alcohol will increase by 16.2%.
| Drink | Price increase |
|---|---|
| Crate of lager, 5% alcohol | €0.50 |
| Bottle of lager, 5% alcohol | €0.02 |
| Bottle of wine, 750 ml (>8.5%) | €0.13 |
The excise duty on cigarettes, smoking tobacco (rolling tobacco) and cigars will also increase further from April 1, 2024.
| Packaging | Current price | Price from April 1, 2024 |
|---|---|---|
| Cigarettes (20 pieces) on average | +/- €9.00 | €10.70 |
| Rolling tobacco (50 grams) | +/- €17.00 | €24.14 |
The excise duty on cigars and cigarillos will be 11% of the sales price from April 1, 2024.
State of play of the bill
These proposals are part of the 2024 Tax Plan. If the House of Representatives and Senate approve the proposal to increase the tobacco tax, the excise tax increases will take effect from January 1 (alcohol) and April 1 (tobacco) 2024.