Adjustment to the Tax Applicable to Cigarettes, Soft Drinks, Alcoholic Beverages and Other Prepared or Fermented Beverages

Rodolfo Salgado, lawyer in Honduras and expert in Commercial Law, shares this article with us on the Ministry of Finance’s adjustment to the Production and Consumption Tax by five-point nineteen percent (5.19%) in accordance with the year-to-year variation of the Consumer Price Index (CPI) for 2023.

The Ministry of Finance, through Agreement No. 218-2024, dated February 26, 2024, determined to adjust the Production and Consumption Tax by five point nineteen percent (5.19%), in accordance with the year-to-year variation of the Consumer Price Index (CPI) as of December 2023, reported by the Central Bank of Honduras (BCH).

The Production and Consumption Tax applies to cigarettes, soft drinks, alcoholic beverages, other prepared or fermented beverages, undenatured ethyl alcohol, and denatured alcohol of any grade. Such a disposition has the following implications:

Regarding cigarettes, which include cigarettes containing tobacco, electronic cigarettes containing tobacco, electronic cigarettes containing nicotine, or other similar electronic cigarettes and/or electric vaporizing devices; the tax in reference is established at a new value of L. 600.99 (approximately US$24.22) for each thousand or fraction of a thousand of cigarettes sold or imported. The tax for the previous year was set at the amount of L. 571.34.

As for domestic production or importation of soft drinks, alcoholic beverages, and other prepared or fermented beverages, the following are some of the new values established according to the present adjustment: