Serbia Has Abolished The Tax Incentives For New Types Of Tobacco Products.

The Ministry of Finance of Serbia recently announced a comprehensive reform of the consumption tax regulations, which will come into effect on January 1, 2026. According to the new regulations, alternative tobacco products such as heated tobacco (HNB), hookah, and herbal tobacco products will be taxed at 100% of the minimum cigarette consumption tax, which is higher than the previous 40%.
This move aims to eliminate tax incentives for new tobacco products and increase state government revenue, as consumers are increasingly giving up traditional cigarettes. The list of taxable products has also been expanded to include nicotine pouches, biofuels, bio-liquids, and natural gas.
In addition, the revised tax return form now requires submission twice a month and includes new reporting codes and fields to enhance accuracy and digital tracking capabilities. Officials stated that this reform will enhance tax compliance and be in line with broader health and fiscal goals.