The Philip Morris company asked the Ministry of Finance to give up the increase in excise on cigarettes planned as of 1 July. Government’s Fiscal Strategy stipulates the increase from €24 to €30 per 1,000 pieces, Pobjeda reports.
According to Pobjeda, the company required the tax increase to be postponed for 1 January 2018. According to estimates, with this excise tax increase, retail price of cigarettes would go up by €0.30-€0.40 per pack.
Philip Morris confirmed to Pobjeda that it contacted the Ministry of Finance, but the company did not provide any further details.
Philip Morris Montenegro CEO Svetlana Vuksanovic said the company expressed its concern about the proposal of the quick and sudden increase of the excise tax that would inevitably lead to unwanted shifts in the market.
“The Ministry of Finance has carefully examined the arguments based on our experiences, particularly those related to the region, and we expect the ministry would analyse our suggestions and respond in the coming days,” Vuksanovic said.
She added that Philip Morris, as government’s responsible partner, always discuss excise policy with the Ministry of Finance.
As Pobjeda unofficially finds out, the authorities are currently waiting for the recommendation of international partners about this proposal, because it is an important part of the Fiscal Strategy that is in line with the International Monetary Fund (IMF) and the World Bank (SB).
