Cigarette sales down 15 per cent
3:26 PM
Kat
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CIGARETTE sales are down by 15 per cent, compared to this time last year but rolling tobacco sales are up 25 per cent, since the tobacco tax hike was imposed in December, a leading importer said yesterday.
The importer, who wished to remain anonymous, told reporters yesterday: “Smokers have abandoned cigarettes in favour of rolling tobacco,” The reason is that rolling tobacco is now cheaper, even with the new tax.
Following a smoking ban at the start of 2010, parliament approved a tobacco tax hike in December, raising cigarette prices by about 40 cents per pack of 20. Rolling tobacco went up about €1.27 for a 50-gramme packet and 64 cents for a 25-gramme packet. The hike was predicted to bring state coffers an additional €31 million.
Before the hike, a packet of Marlboro was €3.90, however it is now sold for around €4.40.
According to this importer, even though rolling tobacco is also taxed it is much less per cigarette. In fact the tax is one third of the tax placed on cigarettes, he said.
The importer highlighted that the decrease in the market combined with smokers moving to cheaper products could lead to a significantly reduced income for the state than predicted by the Ministry of Finance.
“The consumer must understand how much power he has,” said the importer, urging consumers to take the matter into their own hands to change prices by putting pressure on the relevant authorities.
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