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Cigarettes price rise set to leave smokers fuming

The Local · 19 Apr 2011, 14:51

Published: 19 Apr 2011 14:51 GMT+02:00

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“On average the price will go up by 20 cents per pack,” said Ralf Leinweber, of the firm British American Tobacco, which makes Pall Mall.

Competitor firms Reemtsma, which makes the JPS brand and Philip Morris, which makes Marlboro, confirmed similar rises.

The price of a pack of 19 cigarettes will rise by about five percent. A pack of Lucky Strike, for instance, will rise from about €4.60 to €4.80. The top-selling Marlboro brand, which is already more expensive at about €4.90, will rise slightly to about €5.

Self-rolled cigarettes are also in the sights of the tax man. A 40-gram pack of loose tobacco will attract 12 to 14 cents in extra tax each year – as more people roll their own to escape the soaring cost of manufactured cigarettes.

One reason for the rise is higher federal government tobacco taxes, which kick in from May 1, lifting the cost of a pack by between four and eight percent. Similar rises will happen every year through 2015.

However the industry is also imposing a general price rise, which it blames on the rising cost of its materials.

“All of our costs are rising, especially raw tobacco, which is becoming more expensive,” BAT’s Leinweber said.

Smokers are a sturdy source of income for the treasury, delivering €13.5 billion alone in tobacco taxes last year. On top of that, they pay sales tax and the tobacco industry pays profit tax.

Story continues below…

Various political decisions have been financed by hikes to tobacco taxes. Between 2002 and 2005, the tobacco tax was lifted five times to pay for anti-terrorism measures and elements of health reform measures.

DAPD/The Local/djw

The Local (news@thelocal.de)

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Your comments about this article

21:58 April 19, 2011 by storymann
Smokers are generally the lest educated and lower paid individuals , now sorry if I hurt your feelings but I did say generally.

This tax hurts the poor more than any other. It is a real burden to the smokers ,maybe they can quit but that is seldom the results.
21:58 April 19, 2011 by zeddriver
Looks like a vicious circle to me. Government gets 13.5 billion in taxes from smokers. All the while telling smokers that they must stop smoking to save themselves.

I'm not a smoker. But, Wouldn't it be funny if everyone stopped smoking. I can just imagine the politicians would freak out about the lost tax revenue.
22:25 April 19, 2011 by whpmgr
OK, I live in California and we are suffering from smokers quitting. They had this huge tax and assumed it would be working forever. Problem was cigs got too expensive so people quit. AS the tax money dropped off and what happened is that they are now trying to tax sodas and sugary foods because everyone currently eats this type of food. So, they will tax this stuff until no one buys them and they will move on to the next item.

Black Helicopter stuff: maybe the government had the cig people put stuff in the tobacco to addict people so they couldnt stop so that they would pay tax money forever, until they died of cancer.
23:20 April 19, 2011 by wxman
I quit smoking 28 years ago when my son was born, but if we not prepared to make smoking illegal, I recommend leaving smokers alone. One or the other, not this in-between stuff.
00:35 April 20, 2011 by krautrock
Quit smoking and don't give money to the state :-)

Yootube this "Allen Carr - Endlich Nichtraucher 1-9 "
07:05 April 20, 2011 by Fatz Lewinski
This type of taxation tends to push aside the argument that smokers are a long term burden on themselves and on the health care system.

The country needs more income, true but this is just an injection into a big pot, the same way the UK has always done it!

I advocate generating revenue from the source to contribute to the problems that source causes. Why not introduce a law that only allows cigarettes to be purchased with a card obtained from your health care provider? The tax can stay, the income from it goes directly to each Krankenversichering via the card. Easy!
07:15 April 20, 2011 by hOU
This is nowhere near enough.

Add a minimum of 1 euro per packet additional tax on top of this joke 20c rise and maybe the revenue generated will be enough to actually DO something.

German's and their angst ... LOL, get off the f@cking tabs, stressheads. Forget your nine additional insurances and start having babies again.
07:36 April 20, 2011 by Fatz Lewinski

The let's move for a tax on contraception then :)
07:41 April 20, 2011 by hOU
You think that will stop sodomy? :)
16:03 April 21, 2011 by Bruno53
The only "good" thing Hitler ever did: he was a nonsmoker. The rest was awful.
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