Cigarettes and Tobacco News

Feb 22, 2007 -- Consumption of tobacco products in the Czech Republic is not decreasing despite a fast growth in their prices, daily Pravo reported today.

Cigarettes sales in the country amounted to 23.45 billion units last year after 23.5 billion cigarettes sold in 2005.

"Moreover, forecasts have been met that the price increase will provide room for cigarettes smuggling especially from Poland and Ukraine. And it also results in a growth in illegal production," Imperial Tobacco CR executive Kamil Provaznik told the daily.

Czech customs officers detected 22.6 million faked or smuggled cigarettes in 1999, but as many as 76.8 million units plus 253.6 tonnes of illegally imported tobacco in 2005.

Higher tobacco prices make many smokers shift to cheaper brands or buy smuggled cigarettes, Pravo says. Hand-rolled cigarettes are increasingly popular as well.

"Still three years ago, the sale of tobacco made up almost a negligible part of the overall consumption of tobacco products. However, over 700 tonnes were sold in the Czech Republic last year and the forecast for this year is as high as 800 tonnes," Provaznik said.

As of March, excise duty on cigarettes will rise from Kc1.36 to Kc1.64 per unit. Tax on one gramme of unprocessed tobacco, an amount that suffices to roll roughly one cigarette, will increase from 81 to 90 hellers.