Tobacco companies will have no more taxes

Representatives of the leading international tobacco producers warn that enforcing the new excising system will favour the emergence of the black market, whose existence is harmful to everybody. The cigarette price may go up 50-60% in case the tobacco excises double, as proposed by the Finance Ministry (MF).

The draft is to be submitted to the Government before the endorsement of this year’s budget. The foreign companies are also saying that they are already incurring substantial losses and an increase in duties may endanger the mere existence of their businesses in Romania.

British American Tobacco, JT International, Philip Morris and Papastratos officials point out that a viable solution for all three parties concerned, that is consumers- MF- industry was found only when MF was open to talks with the producing industry.

Ever since the introduction of the excises on cigarettes until the introduction of the current system, 15 modifications had been made, which generated instability, investment and budgetary revenue uncertainty and the impossibility to devise long-term business plans.

The current cigarette excising system is the result of the compromise between MF and the industry, SNTR inclusive, according to the above-mentioned officials.