Tobacco industry hopes for longer transition period

APA - Austria Presse Agentur
opublikowano: 06-01-2006, 15:36

Warsaw (Puls Biznesu) – Tobacco companies face difficult times in Poland. On January 16th, a higher excise duty of 16 percent will be implemented. Till the end of 2008, Poland must adjust its excise duty to the EU minimum, or EUR 64 per 1,000 cigarettes. Today, it amounts to EUR 35. Further excise duty increases worry the industry, which is going to prevent it.

Warsaw (Puls Biznesu) – Tobacco companies face difficult times in Poland. On January 16th, a higher excise duty of 16 percent will be implemented. Till the end of 2008, Poland must adjust its excise duty to the EU minimum, or EUR 64 per 1,000 cigarettes. Today, it amounts to EUR 35. Further excise duty increases worry the industry, which is going to prevent it.

This year, the transition period could be prolonged when EU Council analyses the report submitted by the European Commission every four years, Grazyna Sokolowska, corporation and legal issues director in Imperial Tobacco Polska.

In the past, Greece and Spain, managed to receive special transition periods. Poland could ask for ones with Hungary, the Czech Republic, Lithuania, Latvia and Eastland.

The government must represent Poland here, Piotr Szafranski, the CEo of the Polish Association of Tobacco Industry said.

This may be problematic.

We have no such plans, Marcin Mazurek from the Ministry of Finance said.

The ministry wants higher excise duty to raise its revenues. However, according to the Gdansk Institute for Market Economics, if the excise duty reaches EU level in the period envisaged by current regulations, legal sales of cigarettes will fall by nearly 20 percent in 2008 in comparison with 2004, or from 71 to 60 billion cigarettes. The budget would lose 5.6 percent of its revenues and collect PLN 8.7 billion (EUR 2.3 billion), down from PLN 9.3 billion in 2004.

(PLN 1 = EUR 0.263)

 

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Podpis: APA - Austria Presse Agentur

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