13% increase in tobacco excise duty likely to spark pricing war in Poland

Beginning June 1, producers of cigarettes will face a 13% increase in excise duty in Poland. Price wars are thus likely as competing tobacco companies will probably not pass on increased costs to customers. All cigarette boxes beginning June 1 will have information on the maximum selling price. "This situation will be profitable for customers as they will be able to buy cigarettes at the same price in different places," said president of British American Tobacco Jacek Siwek. The new excise duty includes a cost of zl. 37.50 for 1000 cigarettes and 25% of maximum retail price. "This bill will disturb the balance of the Polish market and hurt domestic producers of cigarettes," said president of Tobacco Factories in Lublin Marek Maj. (Parkiet, page 10) M.M.