Hungary: Second Tobacco Concessions Tender Could be Called in 1-2 Weeks

Source from:  Budapest Business Journal (hu)  05/06/2013

A second tender for concessions under a new state monopoly on tobacco sales could be called in 1-2 weeks, business daily Világgazdaság said on Thursday. Asked when one could apply for the concessions again, the National Development Ministry's Customer Service Information Office told the paper: "Maybe within 1-2 weeks".

The results of the first tender for the concessions, announced about a week ago, showed a dearth of interest in applying to sell tobacco in Hungary's smallest communities. Decisions were taken to award 5,415 concessions, but no applications were submitted for 1,417 concessions for tobacco sales in communities with fewer than 2,000 inhabitants.

Nemzeti Dohanykereskedelmi Nonprofit, the company that is overseeing the transformation of the tobacco market in Hungary, said on March 29 that it would call a new tender for the remaining concessions within 30 days, the paper said. After the results of the first tender were announced MPs of governing Fidesz submitted a bill to Parliament that would guarantee tobacco sellers a 10% retail margin, well over the 3-4% industry insiders say is prevalent at present.

One of the bill's authors, state secretary of the Prime Minister's Office János Lázár, said after submitting the amendment that Prime Minister Viktor Orbán supported a 12% sales margin on tobacco-sales. Enditem