Prices of tobacco have been in an awkward position

Adoption of the recent law increasing the excise tax on tobacco has prompted manufacturers to immediately raise the prices of some varieties of cigarettes. Following the adoption of the bill from November 1, the cost of cigarettes pulled up. Thus, the producers decided to "hide" themselves from future losses, without waiting for the signature of the President. Nobody expected that Viktor Yushchenko is experienced in spite of all his beliefs and programs vetiruet law. Now tobacco companies are intensely ponder: whether to reduce prices to the usual level or leave everything as is?

Representatives of the Coalition of NGOs "For a smoke-free Ukraine" claim that the cost of some brands of cigarettes has increased consistently during September and October 2009, although the changes in excise duty at the time was not. Tobacco companies could raise their prices in December, if the law came into force. But the risk of incurring the loss was great, because tobacco manufacturers have decided to play safe at the expense of their customers. Although, according to tobacco workers themselves, they do everything to protect their clients.

Manufacturers have not yet reached a unanimous verdict on whether to cut prices to the level of "dozakonnogo" time. Head of Corporate Communications "British American Tobacco Ukraine" Andrew Krill said that the pricing policy is based on complex calculations of purchasing power, excise tax, the cost of raw materials and production, currency fluctuations, inflation and other things. Therefore, the revision of prices in connection with the abolition of excise tax increase should be based on a set of parameters.

«JTI-Ukraine" is also featured rising prices for their products. Director of Corporate Affairs «JTI-Ukraine" Dmitry Red'ko reported that an unambiguous answer to the question of the company does not. It is possible that the MPs will actively try to overcome a presidential veto.

In the Anti-Monopoly Committee believes that price increases on tobacco products do not deserve special attention, and for the investigation there was no reason. Jump in prices to a price level in the market is not observed, and therefore no comments to the work of tobacco workers there.

Tobacco companies have set for themselves in an awkward position. It is the products that have already been declared at high prices, can not be sold with a decrease in prices. It has sales outlets boast decent stockpile of cigarettes bought more at the old prices.