Tobacco manufacturers say why they raised cigarette prices

Head of Corporate Communications British American Tobacco Ukraine Andrew Krill commented about the fact that the major cigarette manufacturers are not waiting for the decision of the President, increased from November 1, the maximum retail prices for some brands of cigarettes.
"From November 1, the company actually declared the new maximum retail prices of some (but not all) of our brand," - he said.
Krill explained that taking such a decision, the company has tried, as far as possible, take into account the purchasing power and pricing factors such as excise tax, the cost of production, exchange rate fluctuations, inflation, etc.
"I want to emphasize that the proposed date of entry into force of the new excise tax rates set by Parliament in clear violation of Ukrainian legislation (excise rates will take effect from the date of official publication of the law that completely contradicts the requirements of Ukrainian legislation on the taxation system and is a glaring precedent)," - said he.
This decision continues to Krill, Parliament has put manufacturers in the extremely difficult conditions, when the existing order of declaration of prices would not give the possibility to display the new excise rates in current prices.
"In these circumstances, our decision to increase from November 1, the price of some brands was a balance between the commercial nature of the activities of our company, like any other business, and our desire to satisfy consumer expectations," said a representative of one of the largest tobacco producers in Ukraine.
As reported, according to the State Tax Administration, the largest cigarette manufacturers are not waiting for the decision of the President, raised from November 1, the maximum retail prices for some brands of cigarettes.

International experience shows the positive results of raising the excise tax on tobacco

Statistics of the number of people smoking in various countries shows that the decrease in the number of smokers can be successfully combated. One of the controversial topics among Russian experts is to increase the excise rates on tobacco and tobacco products.

Russia's experts argue that the increase in excise tax rates only temporarily make cigarettes less accessible and, simultaneously, will fill the budget. In their view, increase the price of tobacco products quickly leads to filling the market for smuggled goods. As a result, the flow of funds in the budget from the excise tax, only declining, the tobacco industry is going through difficult times, curtailing production and decreasing the amount of tax deductions. But most important: the smoker still get cigarettes for him at an affordable price.

Scientists do not agree with the experts and give us examples of New York. From 1 July 2002 excise tax on cigarettes was increased from 80 cents to 1.5 dollars. A year later, New York could boast that revenues in the budget grew by 10 times! The volume of sales fell by almost half.

At present, Russia has one of the lowest excise tax rates in the world: about 1 euro cents. For comparison, excise rates on tobacco in the UK is about 5 euros per pack. In the European Union set a minimum rate of excise tax (1,28 euro for a pack of cigarettes), which took all the new EU members.

China of May drawing use on struggle of warning labels

The Chinese officials of public health services support the laws demanding placing of photos and other graphic representations on cigarettes on purpose to warn people about danger of smoking.

"The effective prevention is very important", Jan Gonghuan, the deputy director of the Center under the control and preventive maintenance of diseases and the director National to struggle against tobacco has told.

Now packs of cigarettes to bear only small reading of the text of the prevention, "Smoking is harmful to your health".

Despite the fact that, there is an assistance on fractions in the Chinese government, offered new marks should be are ratified by the congress of national representatives to become the law. For this purpose officials from public health services have begun online of a disk of the petition on popular web site Sohu.com.

The drawing campaign is a part of wider national efforts "On a way to free from a tobacco smoke of China", intended for reduction of the general consumption of tobacco in the country. According to positions by the World organisation corrected that he has agreed in 2005 China should forbid sale of cigarettes by the minor, AMP to warning inscriptions on tobacco, to lift taxes and the prices for tobacco products, to limit degree of susceptibility of people from passive smoking and a place more rigid rules on advertising of tobacco products within three years. Not all these obligations, including rigid labels of the prevention, have not been executed yet.

Some previous efforts of China on suppression of the use of tobacco have included an interdiction for tobacco, publicity boards, on smoking of taxi drivers, and on smoking in public places in Beijing a threshold of Olympic games of 2008.

Now one third of smokers in the world - 350 million persons - live in China. The state tobacco company has made $53,6 billion in 2007 from this market, with sale of two billions cigarettes in a year. As consequence, millions people die because of connected with tobacco causes in China every year.

Nevertheless, cigarettes remain cultural significant in China, few people realise the dangers. It is traditional to give a cigarette as gifts, especially on holidays, and smoking are considered as icebreaking activity.

Philip Morris paid almost $ 3 billions for cigars

Corporation Altria, which owns a cigarette company Philip Morris, paid $ 2.9 billion for cigar manufacturer John Middleton, The Associated Press. Approximately $ 700 million of that amount are tax benefits. The transaction is expected to be completed by the end of this year.

John Middleton manufacturers of large cigars, made by machine. The volume of the market in 2007 amounted to $ 5.3 million. As expected by the end of this year growth John Middleton, will amount to $ 360 million and operating earnings of $ 182 million. Altria expects that the acquisition will compensate for the receding demand for cigarettes in the United States of America. Previously with the same purpose, the company started production of chewing tobacco under the brand Marlboro.

At the same time, the corporation Altria preparing to get rid of the international department of Philip Morris. It is assumed that the division of the company held on 30 January. It will allow Philip Morris to a more active work in developing country markets without any restrictions imposed by U.S. legislation.

Cigars manufactured in Cuba

Cigars manufactured in Cuba are believed by many to be the best. Many of Cuba's top cigar producers have left for other cigar making countries and brought their Cuban seeds with them. The Cuban status is thought to arise from the unique features of the soil of Vuelta Abajo district in the Pinar del Río Province at the west of the island, where the microclimate allows high-quality tobacco to be grown.Cuban cigars are rolled from tobacco leaves found throughout the country of Cuba. The filler, binder, and wrapper may come from different portions of the island. All cigar production in Cuba is controlled by the Cuban government, and each brand may be rolled in some different factories in Cuba. Cuban cigar rollers or "torcedores" are claimed to be the most skilled in the world. Torcedores are highly respected in Cuban society and culture and travel worldwide displaying their art of hand rolling cigars.