A price increase on cigarettes of two to five kuna a packet is a burden to consumers due to the increased excise tax and that would be unjust, the Ministry of Finance reported on its web site on Wednesday.
The ministry reacted to estimates in the media that the retail price on cigarettes would be increased by two to five kuna due to a higher excise tax.
The ministry recalls that certain tobacco producers already raised the retail price of cigarettes in May, prior to the government increasing excise taxes, so the ministry considers that any further increase in retail prices above those recommended would be unjustified and would only mean a higher profit for the tobacco industry at the expense of consumers.
Should producers raise the retail price of cigarettes higher than the announced increases in excise taxes, the government has the option of further increasing excise taxes on all tobacco products which would mean that the difference would go to the state budget, the ministry notes.
The government decided on Tuesday to adopt a regulation on the amount of excise tax on cigarettes, fine-cut tobacco and other tobacco in line with European Union commitments.
