Grocery stores and smokers in the United Arab Emirates are stockpiling cigarettes to put off the impact of a new sales tax that is due to come into effect next month and that will increase prices by 100 percent, according to a story in The Khaleej Times.
Some smokers are buying and taking away as many cartons as they can, while others are making advance payments so that grocery stores reserve cigarettes for them.
At the same time, the growing demand from customers is compelling the grocery stores to make up-front payments to cigarette distributors.
Grocery-store owners reportedly told the Khaleej Times that because they were having to pay up front, they were having to ask their regular customers to pay in advance and collect their cigarettes a few days later.
One problem is that suppliers are limiting the number of cigarettes they reserve for grocery stores.