Czech Finmin Submits New Tobacco Tax Legislation Due to Weaker Crown

Source from:  Reuters  03/11/2014

The Czech Finance Ministry has submitted new legislation for excise taxes on tobacco products to reflect a weaker crown currency in order to stay in line with EU directives, it said on Monday.

"The change of the excise duty on tobacco products by about 5-7 percent compared to the present rates is a condition for fulfilling the requirements of a directive in a way that also avoids more changes in the short term," the ministry said.

"The change would be reflected in making a pack of cigarettes 3-4 crowns more expensive."

The Czech central bank intervened to weaken the crown last November to fight deflation risks. The crown has dropped as much as 7 percent versus the euro since then and on Monday traded 5.6 percent below its closing price before the interventions. Enditem