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Austria Tabak reported today (Fri) that the price of its 35 brands of cigarettes would increase by 10 to 20 cents a pack at the end of March.
Austria Tabak spokeswoman Andrea Stelzer said the firm’s parent JTI had decided on the increase owing to higher raw material and production costs.
The increase would apply to the Memphis Blue, Memphis Classic, Hobby, Meine Sorte and Maverick brands, among others, she added.
The price of 60 brands of cigarettes rose by 10 cents a pack last month. Philip Morris raised the price of 23 of its brands then.
The European Court of Justice (ECJ) ruled earlier this month that the minimum price for a pack of cigarettes in Austria was a violation of EU guidelines.
The ECJ said minimum prices were an inappropriate way to try and safeguard public health and suggested higher taxes on tobacco products would be more effective.
The Austrian government had imposed a minimum price of 3.25 Euros for a pack of cigarettes in May 2006, resulting in 56 brands, some of which were below three Euros a pack, suddenly becoming more expensive.
The European Commission filed a complaint against Austria in January 2008 for hindering competition and ensuring manufacturers’ profits through a minimum price for a pack of cigarettes.
Peter Trinkl, who represents cigarette sellers in the Federal Economic Chamber (WKO), said the finance ministry would quickly move to hike taxes on tobacco products.
The media reported that the health ministry supported such a move.
Austrian Times
» Business 2012-05-24
Telekom Austria (TA) investor Ronny Pecik has declared himself a team player.
IV demands focus on industry in crisis
» Business 2012-05-24
The general secretary of the Federation of Austrian Industries (IV) has appealed on Europe’s political leaders to strengthen the continent’s industry.
» Business 2012-05-24
Austria’s biggest airport has managed to increase its profit.
Turks flattened by lone asylum seeker
A furious Nigerian went on the rampage at a refuge for asylum seekers in Leibnitz, attacking several people and damaging property.
Woman bites toddler
A woman who bit a two-year-old tot during a road rage row with her mother is being quizzed by police in Wiener Neustadt, Austria.
New Dany Boon comedy to be filmed in Austria
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China meets Hallstatt
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Skier in court after accident
A man from Graz is in court today accused of having inflicted negligent injury upon a five-year-old when skiing in Carinthia last year.
Two fires in Ottakring claim one life
Two fires started on Thursday evening in the Vienna district of Ottakring, one of which claimed a man’s life. Several people were evacuated as a result of the two blazes.
Cows zapped to death by lightning
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Great expectations for summer tourism season in Vorarlberg
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