Czech lower house approves rise in cigarette tax

Philip Morris CR as

02/10/2015 10:37

PRAGUE, Oct 2 (Reuters) - The Czech lower house on Friday 
approved raising the excise tax on cigarettes next year 2016 to 
bring it in line with European Union requirements. 
    The tax increase is a response to a weakened crown currency, 
which the central bank has kept at 27 crowns per euro or weaker 
since November 2013 to loosen monetary conditions and boost 
inflation. 
    The higher tax should increase the price of a pack of 
cigarettes by 3-4 crowns ($0.16) from January 2016 and add about 
3.3 billion crowns ($135.79 million) to state revenue next year. 
Tax revenue should grow by 2.5 billion crowns in total in 2017 
and 2018. 
    The bill still must go through the Senate before being 
signed by the president. 
    The main Czech cigarette producer is Philip Morris CR 
 TABK.PR . 
    The tax rise will help the state meet a EU directive that 
sets the tax at 90 euros per 1,000 cigarettes.  
     
    ($1 = 24.3200 Czech crowns) 
 
 (Reporting by Robert Muller, editing by Larry King) 
 ((robert.muller@thomsonreuters.com; +420224190475; Reuters 
Messaging: robert.muller.thomsonreuters.com@reuters.net)) 
 
Keywords: CZECH TOBACCO/TAXATION