Croatia cigarette prices to go up April 1, 2009...

March 30, 2009 - The prices of all Croatian Tobacco Company (TDR) cigarettes will go up by two kunas or 0.27 Euros. (TDR - Tvornica Duhana Rovinj
- is the leading cigarette manufacturer in the region, owning a 25 percent share of the market, employing 1000 and working with more than 2000 tobacco farmers in a unique, vertically integrated business organization..

Change in pricing some cigarette brands in TDR's product portfolio. The price of York cigarettes will go up by one kuna or 0.13 Euros (or 0.17USD). TDR head Davor Tomaskovic said it was keeping York cheaper to benefit poor cigarette smokers.

That means the price of popular Ronhill will go up from 16 to 18 kunas (2.41 Euros, 3.21USD) and Walter Wolf will go up from 15 to 17 kunas (2.28 Euros, 3.03USD).

Tomaskovic claimed the new excise taxes on domestic and foreign cigarettes had to affect the price of retail cigarettes. He added the taxes would would also increase smuggling and black-market sales of cigarettes, harm domestic production and lower TDR’s income by three percent.

The Croatian government has increased excise taxes on domestic and foreign cigarettes to comply with EU guidelines. (Croatia has been a candidate country for EU membership since June 2004. Croatia continues bringing its legislation into line with the European Union in order to enter the pan-Europe bloc by 2011, Croatian Foreign Minister Gordan Jandrokovic.

As of 1 June, there will be a tax of 180 kunas or 24.31 Euros (32.35USD) on every 1,000 cigarettes or 3.6 kunas or 0.48 Euros (0.639USD) on each pack of cigarettes.

Tomaskovic said Croatia would have the most-expensive cigarettes in Europe in terms of the cost of living after the taxes entered into force.

TDR already noted a five-per-cent reduction in sales in January after it had raised the price of cigarettes by one kuna (0.13 Euros) and expects that percentage to increase. Tomaskovic said bad business results could have a negative impact on employees.

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Reference: Price of cigarettes to go up, Croatian Times, 3/28/2009.