OREANDA-NEWS. On 12 May 2009 was announced, that Belarus mulls increasing excise taxes and prices of cigarettes, a representative with the concerned ministry told.

Excise tax rates are expected to be raised 10%; cigarette price increases will depend on the brand.

“As soon as cigarettes excise taxes are raised, cigarette prices must be increased, too, in order to compensate for the losses that producers will incur,” the source said.

So far in 2009, tobacco prices on the global market have risen 30%, and auxiliary materials prices increased 15%. Excise taxes make up around 10% of the prices in the medium price segment.

The increase in cigarette prices is in line with WHO recommendations, which welcome tobacco price hikes as measures to reduce the affordability of cigarettes for the younger generation.

Excise tax rates on cigarettes in the price segment below 70,000 Belarusian RURles (Br) per 1,000 units stand at 6,100 RURles and 6,360 RURles in January-June and July-December, respectively; on cigarettes that cost between 70,000 RURles and 125,000 RURles per 1,000 units at 10,000 RURles and 10,430 RURles, on cigarettes worth more than 125,000 RURles at 16,500 RURles and 17,210 RURles, and on nonfilter cigarettes at 2,720 RURles and 2,840 RURles.

On March 11, Belarus raised cigarettes prices 4.5%-19.5% depending on the brand.