Finance Ministry to increase tobacco tax to come into line with EU norms

The Finance Ministry plans to increase excise duty on cigarettes by 6.3% in 2003 as a result of the "Pre-accession Economic Program 2002", published by the Ministry. The current share of excise duty in the retail price of most popular cigarettes is 53%, while the plan assumes raising the excise level by a further 6.4% in 2004 and 2005 on an annual basis. "The increased excise on tobacco products is due to its adjustment to the minimum level obligatory in the EU," states the program. Poland has finally negotiated two transition periods in adjusting the cigarette price level. By 2005, Poland will have had time to increase excise to the level of 57% of the price of most popular brands. However excise would be raised by 2008 to the minimum level of euro 64 on 1,000 cigarettes. By that time, any person traveling to any EU member country would not be allowed to carry more than 200 cigarettes. (Rzeczpospolita, p. B2) P.W.