BULGARIA: Cigarette Makers to Square off with Price Wars in 2009

Source from:  Dnevnik a.m. 12/04/2008

RatingBulgaria's cigarette producers will battle high excises and the financial crisis with a price war next year, said Kornelia Ninova and Ivan Bilarev, the newly-elected executive directors of Bulgarian tobacco holding group Bulgartabac. The new excise dutities from January 1, 2009 yet to be voted at second reading will have their toll on cigarette prices in late March, experts say. The parliamentary budget committee voted duties of 40.5% of the market price plus BGN 41 for 1 000 pieces. Bulgartabac and cigarette factory Slantse Stara Zagora said the new tax was unjust. Western companies operating on the market declined to comment. The new excises will reduce the difference between the most expensive and the cheapest brands, according to Bilarev. The higher percentage rate goes against EU practices by punishing costly brands, said Philip Morris Bulgaria. Under proposed legislative changes, Parliament should take over from the finance ministry the task to approve the term of old excise labels at the acception of the new. Japan Tobacco international (JTI), which supplies the Camel and Winston brands in Bulgaria, said the amendment would hurt cigarette companies by making the market unpredictable. Bulgartabac and Slantse Stara Zagora gave the thumb-up to the proposal. Slantse Stara Zagora executive director Stefan Slavov told Dnevnik in a recent interview the new law would place all market players on an equal footing. Enditem