The first raise of excise duty was made in January and the next has come in July that will be effective in October. As a result, the price of cigarettes will go up between EEK 10 and 11 by October, according to Juhan Mitt, CEO of Scandinavian Tobacco Eesti. “The situation is very confusing with retail prices. Many producers are still using their stocks and retail prices have not yet gone up,” said Mitt. “The smokers will have a shock,” he said. Mitt did not believe that tobacco producers would be willing to cover the excise duty increase from their own profit which means that the price of cigarettes could go up by ten kroons by the end of this year. Davamı →

The European Union wants the minimum duty on cigarettes to increase to reflect inflation, putting all states on an equal footing. The EU plans giving member states greater flexibility in levying duties as part of efforts to reduce the number of smokers. The proposal is part of the bloc’s regular four-yearly update on the union’s tobacco excise duties. Consumption of cigarettes in the 27 nations fell by 10 percent between 2002 and 2006, while excise duties rose by an average of 33 percent. A 25 percent price rise would be needed to achieve a 10 percent cut in demand according to the commission. It also wants higher taxes on rolling tobacco to bring them in line with cigarettes, likewise cigars and cigarillos.
Source: EuroNews