Fri, May 18, 2012
Tobacco Reporter Magazine Content:
Illicit trade set to take 40 per cent share in Bulgaria
Jan 26, 2010—Bulgartabac believes the trade in illicit cigarettes will reach 40 per cent of the country’s total cigarette trade this year as a result of the recent heavy increase in excise duty, according to a Novinite story.
Having carried out a survey of smokers, Bulgartabac estimates the current trade in illicit cigarettes at 30 per cent of the total, up from 15 per cent a year ago.
At the beginning of this year, the specific element of the excise duty was raised from BGN41 to BGN101 per 1,000 cigarettes, while the ad valorem element was reduced from 40.5 per cent to 23.0 per cent.
The new duties increased the retail price of a pack of cigarettes by between BGN1.10 and BGN1.60, and the price of the best-selling Victory brand rose from BGN3.40 to BGN5.00.
At the end of last week, the Bulgarian Customs Agency was forced to announce that, with immediate effect, new limits had been imposed on personal imports of tobacco products by travelers entering Bulgaria by road, sea or river crossings from outside the European Union.
The Agency said the reductions were necessary to stop people importing large quantities of tobacco products from neighboring countries with low tobacco prices by repeatedly crossing the borders.
Jan 26, 2010—Bulgartabac believes the trade in illicit cigarettes will reach 40 per cent of the country’s total cigarette trade this year as a result of the recent heavy increase in excise duty, according to a Novinite story.
Having carried out a survey of smokers, Bulgartabac estimates the current trade in illicit cigarettes at 30 per cent of the total, up from 15 per cent a year ago.
At the beginning of this year, the specific element of the excise duty was raised from BGN41 to BGN101 per 1,000 cigarettes, while the ad valorem element was reduced from 40.5 per cent to 23.0 per cent.
The new duties increased the retail price of a pack of cigarettes by between BGN1.10 and BGN1.60, and the price of the best-selling Victory brand rose from BGN3.40 to BGN5.00.
At the end of last week, the Bulgarian Customs Agency was forced to announce that, with immediate effect, new limits had been imposed on personal imports of tobacco products by travelers entering Bulgaria by road, sea or river crossings from outside the European Union.
The Agency said the reductions were necessary to stop people importing large quantities of tobacco products from neighboring countries with low tobacco prices by repeatedly crossing the borders.
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