Cigarette prices to go up

Whereas an average net salary in the economy was enough to buy 194 cigarette packs in the best-selling price category at the end of 2002, the same money will be enough to buy only 62 cigarette packs of the same type by the end of 2006, following the rise in excises up to the minimal level required by the EU. Romania is now asking for a three-year transition period, to last until December 31, 2009, in order to attain the minimal excise level set by the latest EU directive on cigarettes. It had initially asked for a postponement until December 31, 2011. The Romanian party says introducing EU’s minimal excise level would lead to a surge in the cigarette prices, expected to result in a sales decline. It would also boost smuggling and tax evasion. British American Tobacco (BAT) Corporate Affairs Director Adrian Popa says the rise in excises would push the current price of a pack of cigarettes in the best-selling category (52.8% market share) from 20,000 ROL to 80,000 ROL. ZF