POLAND
Cigarette sales drop

The sale of tobacco has dropped 2.5 billion to 69.8 billion cigarettes in Poland in 2007, the National Association of Tobacco Industry has revealed.

An increase in the excise duty which has contributed to a significant rise in tobacco prices and anti-smoking campaigns in the Polish media seem to be the main reasons for the change of attitudes among 9 million habitual smokers in Poland.
The Polish State Treasury is one of the few winners in the situation. Despite the sharp drop in tobacco sales in the first eleven months of 2007, the budget realised PLN 11.8 billion (US$ 4.8 billion) in revenues compared with PLN 10.4 billion in 2006. In 2008, the profit is expected to grow by an additional PLN 2.3 billion.
Poland has to be fully compliant with EU requirements regarding excise duty on tobacco by 2009 (at least EUR 64 per 1,000 cigarettes).
The high tobacco prices are likely to result in an increased number of cigarettes smuggled to the country and sold illegally in Poland. Estimates show that the share of smuggled cigarettes in the total national tobacco consumption has reached 30 per cent. In 2007, the Polish Customs seized more than 503 million illegal cigarettes, mainly on the eastern border. (pi)

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