Poland reduces demands in EU talks on cigarette tax adjustment period

In the ongoing EU enlargement negotiations, Poland has abandoned its insistence on a five-year transition period to adjust to the EU's level of cigarette excise tax, and called instead for a three-year transition period. EU duties are currently set at 57% of the retail price for the most popular cigarette brands. In Poland, tax is 51.3% of the retail price. It is estimated that if Poland were obliged to close the 5.7% difference with the EU before the end of 2003, retail prices would leap by around 70% in comparison with 2000. According to Deputy Finance Minister Krzysztof Ners, it is Germany and Austria that are insisting that Poland increase its excise duty. (Prawo i Gospodarka, p. 6) P.J.