Cigarette smuggling costs Treasury zl. 730 mln, increasing excise taxes blamed

According to estimates conducted by the Alliance of Distribution Company Employers (ZPPD) around 460 million cigarette packs were smuggled into Poland in 1999. The losses incurred to the Treasury are estimated at zl. 730 million. According to ZPPD representatives the decrease of the legal cigarette market is the result of high increases in excise duty and a considerable and still increasing gap between cigarette prices in Poland and East European countries. "To stop cigarette smuggling in Poland we must change the excise duty policy and seal the borders," said ZPPD president Jan Adamski. In 2000 the excise duty rate has been raised twice and next year it will increase by 14.6%. (Puls Biznesu, page 4) A.Z.