Tobacco sales drop due to excise tax and smuggling, more increases coming

"Raising the excise tax on cigarettes by 10-15% means a 8-14% price increase on each pack," said representatives of the National Association of Tobacco Producers (KSPT). Two more increases are expected this year, which will result in a 15-20% boost to cigarette prices. Large producers such as Philip Morris with a 35% market share, Reemtsma with 27% or BAT with a 12% share, will cover the excise tax increases. Smaller domestic companies like Polski Tyton, with a 1.7% market share, have no choice but to raise prices. Still the excise tax on tobacco in Poland is lower than in European Union (EU) nations which means it will have to increase significantly within the next few years. (Zycie, page 14)