Cigarette Prices In Romania Go Up By RON1/Pack On Avg As Of Thursday

„The price hike is fueled by the higher value added tax (VAT) and the new government decree fighting tax evasion, which raises guarantees for fiscal storage,” Lazar said.

The cheapest pack of cigarettes in Romania will cost RON9.9 as of Thursday.

„In (the Republic of) Moldova, the cheapest pack of cigarettes costs about one Romanian leu. We expect a fresh boost in contraband, which had decreased to 26.8% of the market in m ay from 36.2% in January,” Lazar said.

She highlighted tax hikes are the only reason cigarette producers are raising cigarette prices.

Lazar also said the Romanian cigarette market decreased 40% on the year in the first quarter of 2010.

As of January 1, 2010, excise duties on cigarettes were increased to EUR74 from EUR64 per thousand cigarettes and the price of the best selling brands reached RON10, which is a 50% increase compared to the beginning of 2009. Compared to the beginning of 2009, excises on cigarettes have increased 48%, plus a 14% hike due to the currency exchange rate.