Cigarettes are also becoming more expensive

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Cigarette prices are expected to rise very quickly, probably from the beginning of next month, although none of the country's cigarette manufacturers and importers have officially confirmed the information. Observer reports.

For those familiar with the situation, this announcement was expected given the trend of increasing prices of raw materials, raw materials and energy, especially gas and electricity, which have a significant share in production. On the other hand, rising fuel prices have drastically increased transportation costs, which also has an impact on the final selling price of cigarettes.

An additional problem for cigarette manufacturers is the disruption of the production and distribution chains of certain products, such as paper and cardboard, which is caused by the pandemic and creates additional pressure on the prices of these raw materials that are necessary for production.

On the other hand, pressure on the price of cigarettes is created by the regular annual increase of the excise tax, which was introduced by the state as an additional duty to discourage smoking. Namely, every year, starting from 2013 until 2023, the excise tax on cigarettes increases by at least five denars per box. In recent years, in order to avoid higher prices for cigarettes, some cigarette manufacturers and importers have decided to bear part of the cost of the increased excise duty. But this year, due to the enormously increased costs for production, taking over part of the burden of the regular annual increase in excise would cause a complete disruption of the profitability of production.

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