Philip Morris International chose to absorb the higher duties, which for the first time tax both value and quantity, the newspaper said. Previous excise levies were based on one or the other, whichever produced more revenue, the Post said.
Cigarette packs retailing at BHP 60 (EUR 1.51) or lower are subject to a 20 per cent duty that will increase to 40 per cent in two years, the Post said. Packs priced at more than BHP are subject to the 40 per cent tax. The quantity component of the levy was increased from BHP 1.10 to BHP 1.20 per cigarette. The new system took effect 16 Sept.