Government moves to protect cigarette excise

Currently, however, excise is sitting at a low EUR 42 per 1,000. EU regulations also states that the excise rate be connected with the price of cigarettes. Between 2005 and 2006, the excise jumped EUR 7 to 42.7, however, this year it decreased.  According to the Finance Ministry, revenues from cigarette excise were zl.500 million lower than planned due to producers cutting prices in competition. In January 2006 British American tobacco decreased the prices of Pall Mal cigarettes by zl.0,90, followed shortly after by Philip Morris Polska decreasing the price of L&M cigarettes by zl.1. By cutting their prices cigarette produces were able to reduce the amount of excise, prompting the Finance Ministry to prepare a bill to counteract this strategy. (Rzeczpospolita, March 31 - April 1, p. B1) M.M.