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EU directive revisions threaten market stability, grower incomes and taxes

| July 15, 2013

The revisions to the EU Tobacco Products Directive, as endorsed by the environment, public health and food safety committee, would ban almost 38 percent of Poland’s current cigarette sales, according to a Polish News Bulletin story.

The new directive is due be decided upon at a plenary session of the EU parliament in September, but, for the time being, Poland’s concerns center on the proposed bans on the sale of menthol and slim cigarettes.

MEP Malgorzata Handzlik believes that most menthol- and slim-cigarette smokers will simply switch to other formats and that the drop in sales due to the bans will be about 5 percent.

But some in the tobacco sector believe that the presence of illicit menthol and slim cigarettes will mean that the drop in licit cigarette sales could be as high as 30 percent of the market’s total value.

Under such a revised regime, it is expected the annual turnover of small- and medium-sized stores selling tobacco would be cut by PLN8.6 billion; tobacco grower sales would fall by PLN40 million, and tax revenues would drop by PLN8.85 billion.

Category: Breaking News

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