JT International: The latest decision to increase excise tax on cigarettes - is an aggression against the buyer

"The unprecedented increase in excise taxes on tobacco products in Ukraine, taking place from December 2007 to provide a new pressure on the already low purchasing power," - said Marchant Case, CEO, JT International Company Ukraine ", -" we are working on this the market for more than 15 years, having invested more than $ 130 million, but never before have we been exposed to so many spontaneous tax initiatives during the past 2 years, taken in violation of the Constitution and some laws of Ukraine. "
The bill number 4707, Parliament voted yesterday, once again significantly increases the rate of excise duty on tobacco products. Now about 65% of the cost of a pack of cigarettes a consumer pays the government in taxes. This was due to the fact that the weight of excise tax in the price of a pack rose to 5.11 times on different brands of cigarettes in December 2007. The situation is also aggravated by a significant increase in costs of raw materials for the production of tobacco products and the devaluation of the hryvnia, which are borne by manufacturers and sellers.
Consumers will have to pay in 2,5-6,5 times more for their usual brand, compared with December 2007. While the price of cigarettes has increased significantly since 2007, unfortunately, the growth of real incomes of Ukrainians was one of the weakest in Europe. In terms of gross domestic product per capita in Ukraine cigarettes now one of the most expensive cigarettes in Europe.
Unpredictable and inconsistent tax policy has an extremely negative impact on legal tobacco production, which after the May increase the excise tax has decreased by more than 20%.
We can clearly see a repetition of the situation in 1999, when the tax increase during the crisis has significantly undermined the legitimate tobacco business. Every third pack of cigarettes sold in Ukraine at that time, was smuggled out of Russia or Moldova. New tax increases on cigarettes in Ukraine make the stamps from Russia and Moldova is significantly cheaper, encouraging the illegal trade in them again. We are very disappointed that the lessons of the past were forgotten.
In May-August 2009, the total excise levy on products originating in Ukraine and imported tobacco products amounted to 65% of the planned increase in excise duties at the last earnings in the budget. The growing illegal cigarette trade in the future will only increase the budget deficit, destroying the legitimate industry and making it impossible to further investment plans.
Initiatives to increase the excise tax on tobacco products have caused serious damage to our business. "JT International was forced to close the tobacco factory in Cherkassy in May 2009, and a reduction were more than 400 employees. In October, we had two weeks to suspend work at our factory in Kremenchug, because of declining production. Soon, it may be necessary to repeat.
"JT International understands the need to increase the excise tax on tobacco products. But we expect that the state will do so gradually, in a systematic and predictable manner as is done in many countries. The company is ready to share its experience in the field of taxation with the Government

The Kirghiz minister has urged to forbid tobacco advertising

The offer of the government of Kirghizia on an absolute prohibition of advertising of tobacco has met with in means in weight of the information approval from outside of committee of parliament on social policy, informs "Interfax-Kazakhstan" referring to the parliament press-service. It is expected that respective alterations in the law “About advertising” will be accepted in the near future.
During performance at session of committee of parliament the head of Ministry of Health of Kirghizia Marat Mambetov has noticed that the given measure urged to reduce quantity of smoking inhabitants of the state. “Full it is locked on all forms of advertising in mass-media reduces social appeal of smoking and promotes decrease in consumption of tobacco products, especially among youth”, - he has declared. Thus the minister has paid attention to experience of other countries in this point in question. As he said, results of researches have shown that after input of the given interdiction in a number of the countries their population began to use for 25 percent of less cigarettes.
At the same time the agency notices that the interdiction for advertising of cigarettes can strongly be reflected in local mass-media. Now advertising of tobacco products for many mass media is one of the main sources of incomes.

I wanted a cigarette and blew

Transcarpathia in an accident with domestic use of gas, the investigation which is currently engaged in management Gosgorpromnadzora.

According to Alexander Góis, chief inspector gazotehnicheskogo, a resident of the village of Esen Uzhgorod district, Robert Laden hit the burn center of the regional clinical hospital with burns of the face and extremities of the second degree. Damages were obtained in gas explosion 12.10.2009 year, which occurred in the annexe to a private home.

The blast also damaged by the building. Life of Robert Laden is out of danger. The cause of the tragedy was a gas leak and the victim attempted to smoke, which triggered the explosion. The causes of leakage are examined by experts.