[size=75:1wou5j8t]novinite November 26, 2009

Bulgaria Parliament Approves Staggering Cigarette Tax Hike

Bulgaria’s Members of the Parliament voted Thursday to increase the cigarettes tax.

The MPs decided on second reading to establish a BGN 101 excise for 1 000 cigarettes instead of the current BGN 41, while the proportional tax will be 23% of the sales price instead of the current 40,5%. The later will affect mostly expensive cigarette brands.

The first proposal was for a tax of BGN 74 for 1 000 cigarettes and 36% of the sales price.

The tax for tobacco for pipes and cigarettes is set at BGN 100 per kg.

The opposition left-wing declared they oppose the tax hike. Kornelia Ninova, MP and spokesperson of the Bulgarian Socialist Party (BSP), defined the move as a mistake, pointing out the negotiated agreement with the EU is for lower tax and the increase would contribute to wide-spread contraband instead of curbing smoking. According to Ninova, the tax increase will hit hard the Bulgarian cigarette maker “Bulgartabac” which employees 2 000 workers.

She was backed by Aliosman Imamov, from the ethnic Turksih Movement for Rights and Freedoms (DPS) party, who also said the changes will hurt “Bulgartabac.”

The new duties will increase the price of a pack of cigarettes anywhere between BGN 1,10 and 1,40 making the price of the best-selling “Victory” brand BGN 5 instead of the current BGN 3,40.

The start of the slippery slope.

Smokers are going to want their smoke, all that will happen is they'll find cheaper ways to get their tobacco, wide-spread contraband usually.
So less people buy the expensive taxed ones............ more contraband..............more tax so less people buy the taxed ones............more contraband.............more tax so less people buy the taxed ones............ etc etc etc.
Alternatively they'll grow their own, still less tax to pay.

They hit the poorest of the people so much harder, the people who make the rules (politicians) have enough money paid to them from the taxes already in place that they can afford to pay the increase.

Look at the UK and all the cotraband cigs, wine, etc.

Won't they ever learn?

[size=75:23sd2gc0]Sofia echo 2 April 2010

Bulgaria's new cigarette prices come into force

Smokers in Bulgaria will pay an average of one lev more for a packet from April 1 2010, when the increased cigarette prices come into force.

From April 1 2010, shops can only sell cigarettes with the new excise stamps and anyone caught selling cigarettes at their old price will face sanctions of up to 2000 leva. The cigarette packets with old excise stamps will be destroyed.

This means that the most popular Bulgarian brand, Victory, will now cost 4.60 leva a packet. A Marlboro pack will cost five leva, while a pack of Kent cigarettes will cost 4.80 leva and a pack of Viceroy will cost 4.30 leva.

The King and Merilyn brands will cost 4.20 leva and 4.30 leva a packet, respectively, while the Karelia Slims brand will cost 4.70 leva.

The increase is between one lev and 1.40 leva in all brands, Bulgarian and foreign. It is a result of the increased excise duty on cigarettes, which, according to the Finance Ministry, would not only bring 130 million leva to the Budget, which can be used for health care, but will reduce the number of smokers in Bulgaria.

The decision was taken at the end of 2009 and shops and traders had three months to sell all quantities with the old excise stamps.

Already media reports have shown that cigarettes sales had started going down with many people turning to rolling tobacco.

Tobacco business representatives have critisied the idea of raising the excise duty, saying that it would only stimulate contraband and will not bring the expected revenue to the Budget.