An increase in excise duties will further yank up cigarette and fuel prices in 2006 under the new Excise Duty Act oked tentatively by the budget policy committee of the Bulgarian parliament. Sofia has pledge to Brussels to gradually even out domestic excise duty rates with the minimum rates enforced within the EU. The revision of the excise duty on cigarettes is expected to tack 0.30 levs on the price of the best-selling domestic brand, Victory. Import brands will appreciate by 0.50-0.70 levs. The price of petrol is expected to increase by an average 2.6%. Under the new bill, only the customs administration will collect the excise duties while the tax authorities will no longer have any commitments in that respect. The bill also introduces the system of licensed excise duty warehouses and the deferred payment of excise duties. The excise liability will arise with the production of excise goods and not with their sale as is the effective rule. The amount of the deferred excise payment will be secured with a bank deposit or guarantee. The licensing of excise duty warehouses will likely begin in early 2006 while the enforcement of the new bill will probably start from July 1, 2006.