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19. 03. 10. - 17:00

Higher cigarette prices on tap

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

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