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September, 2007


Cigarette prices set to rise on mulled excise hike
Sofia - The Bulgarian finance ministry has proposed to hike the excise on cigarettes by 33% in 2008.

At a recent cabinet meeting, Finance Minister Plamen Oresharski reportedly presented a draft for the increase in the excise on unleaded petrol, gas oil, kerosene, coke, coal, electricity, and cigarettes. A pack of the nation’s best-selling cigarette brand, Victory, will be marked up to 3.40 levs from its present 2.60 levs.

The official reasoning behind the excise hike is the need to reach the minimum EU rates while taming inflationary factors in view of Sofia’s bid for an eurozone entry. In 2006, Bulgaria hiked the excise on cigarettes to a level originally not expected to be reached before 2008. The move added 1 lev on average to the retail price of cigarettes.

The finance ministry is now proposing to adopt upfront half the excise rate originally scheduled to kick in in 2010 and leave the other half for 2009. This means the excise will increase from the current 74.75 levs per 1,000 pieces to 100 levs per 1,000 pieces in 2008.

Leading market research publication sets eye to growing French tobacco market
Dublin - Research and Markets (www.researchandmarkets.com/reports/c65393) has announced the addition of “Tobacco in France to 2011” to their offering.

This databook is a detailed information resource covering all the key data points on Tobacco in France. It includes comprehensive value volume segmentation and market share data. The databook supplies actual data to 2006 and full forecasts to 2011.

Contains information on four categories: chewing tobacco, cigars and cigarillos, cigarettes and loose tobacco. Provides market value, volume, expenditure and consumption data by market, segment and subsegment. Includes company and brand share data by categories.

The market for Tobacco in France increased between 2001–06, growing at an average annual rate of 2.8%. The leading company in the market in 2006 was Altria Group, Inc. The second-largest player was Seita (Altadis) with British American Tobacco plc in third place.

Government pledges to enforce ban on middlemen
Blantyre - The Malawian Government announce that next year it will ensure strict enforcement of the ban on intermediate tobacco buying because the practice has contributed to low prices at the auction floors, government has said.

Deputy Minister of Agriculture and Food Security Binton Kutsaira recently spoke in the capital of Lilongwe when he opened the 19th Annual General Congress of the Tobacco Association of Malawi (TAMA), where he noted illegal intermediate tobacco buyers were cheating small holder farmers who ended up getting low prices at the auction floors because of poor quality tobacco. “These intermediate buyers just buy tobacco any how, caring only about quantity and this compromises the quality of tobacco that goes to the market and it’s our farmers who suffer because the poor prices affects everyone.

The system of intermediate tobacco buyers was introduced in the country in 1994 and abolished in 1998 but the enforcement of the abolition has not been strict.

Tobacco smuggling in 2006 costs nations $40 bn
Bangkok - The illicit trade in tobacco last year cost governments $40 bn in lost tax revenues and amounted to 10.7% of the world trade in cigarettes, reports experts at a recent a global health conference in Bangkok.

A major goal of the recent global health conference was to highlight the need to implement the international tobacco control treaty-the Framework Convention on Tobacco Control of the World Health Organization (FCTC)-to crack down on cigarette smuggling.

Combating the illicit trade is a provision of the FCTC, which has been ratified by 147 countries and the European Community.

Tobacco control advocates at the meeting are urging FCTC parties

to agree to begin work on a new

international treaty aimed at stemming losses to national budgets by eliminating illicit tobacco trade.

The Framework Convention Alliance is made up of some 300 organizations representing over 100 countries around the world. It was created to support the development, ratification, and implementation of the WHO FCTC.

Tobacco International - September, 2007

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