Reemtsma threatens boycott of Polish tobacco growers if excise tax increased

German-based Reemtsma, one of the key players on the Polish tobacco market, has stated that if the Polish government increases the customs duty on imported tobacco, it will stop buying tobacco on the domestic market and will use its own stock, which is enough for two years of production. The move poses a threat to already embattled domestic tobacco growers. The cigarette market has been in crisis recently, with sales of cigarettes falling from 88 billion units in 1999 to 74.4 billion in 2001. After a plan to subsidize Polish tobacco failed, the government is attempting to rescue the internal market by increasing customs duties on imported tobacco. According to Reemtsma Polska President Michel Hietzman, the situation in the tobacoo market needs to be radically changed. "One could start subsidies enabling export of Polish tobacoo, to rescue the local growers. But there should be a dialogue between the government and the tobacco growers." (Puls Biznesu, p. 6) P.W.