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Cigarettes, increases in sight for low cost

The Ministry of the Economy is preparing a decree to increase the "minimum tax burden", the fixed part of the tax on smoking which has the greatest impact on the price: increases of up to 30 cents per packet are on the way for those which cost, today, between 4,20 and 4,40 euros.

Cigarettes, increases in sight for low cost

Increases in sight for low-cost cigarettes, those that vary between 4,20 and 4,40 euros. The Ministry of the Economy is preparing a decree to increase the "minimum tax burden", the fixed part of the tax on smoking which has the greatest impact on the price. In fact, the new legislation establishes that the excise duty must be "proportional to the weighted average price of cigarettes". 

This decision would be an application of one of the provisions of the tax reform, which gives the ministry the power, following a proposal from the State Monopolies Administration, to raise taxes on cigarettes without going through Parliament but with a simple administrative act. The increase could be 30 cents a pack, and could affect cigarette brands such as John Player Special, Chesterfields and Gauloises.

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