Cigarettes in Czech Republic will increase in price this summer
This summer price on cigarettes in Czech Republic will increase in price again. Ministry of Finance has offered to accept law "About consumption tax" because of which price of one pack of cigarette may be increased by 3-4 crowns. With the help of new law Czech Republic authorities want to eliminate discrepancy appeared as result of low exchange-value of crown. As result of currency weakening Czech Republic doesn´t reach the level of taxation rate determined by EU. They are usually shown in euro, writes CTK.
This year it is planned to increase the tax only by 5-7%. Thanks to new tax state would be able to return about 2.8 billion crowns, approximately 0.23 billion every month. However, law usually comes into force only in three months after its adoption. That is why cigarettes purchased before new conditions have been approved by Parliament, possibly will be sold at prices. Increase of tax rates will result in rise in inflation by 0.216 percentage points.
Czech Republic is obliged to fulfill EU conditions: to charge tax in amount of 90 euro on each 1000 cigarette packs. Because of weakening exchange-value of crown norms may be not observed. In this case the country would be subject to certain sanctions. For the last time law that has increased tax on tobacco products was adopted in Czech Republic in 2012.