Bulgaria, home to the European Union’s second-highest smoking rate, reportedly considers forcing smokers pay even more for their cigarettes by approving a legislation to increase the nation’s cigarette excise taxes by 30 percent to the EU’s average. The move is intended to generate more revenue to the treasury by raising the taxes and reducing expenses on health care.

Simeon Dyankov, Head of Bulgarian Finance Ministry has admitted that tobacco taxes would definitely be increased next year, although there has been no official confirmation of the increase, because the 2010 state budget is in the process of finalizing.

News about the tax hike had a huge feedback from tobacco industry, which stated that further tax increases would ruin Bulgarian tobacco companies, already deeply hit by consumption downturn and black market and even could result in bankruptcy of the major cigarette maker in Bulgaria, Bulgartabak Co.

Bulgartabak spokesman told the Associated Press that the revealed bill to raise cigarette tax to 148 lev ($112) per 1000 sticks was a shock, since they were negotiating a rise to 124 lev ($94) last month.

Bulgaria is well-known for its controversial anti-smoking laws. Four years ago the government prohibited smoking in bars and restaurants, the ban which was massively flouted by tourists and even Bulgarians. Moreover, people are skeptic about the initiatives to revise current anti-smoking legislation and implement a comprehensive prohibition of smoking in public places, citing the lack of enforcement.

Although current indoor smoking ban has been violated even by legislators (the cameras in the Government building showed that ministers use to smoke in their cabinets), latest cigarette tax increases triggered a huge decrease in sales.

The current year has witnessed various anti-smoking moves in many European countries, including the members of European Union, where Androulla Vassilou, head of European Public Health Committee has urged governments to implement a uniform legislation prohibiting smoking in all public places across the 27 member-states.

In April 2009 Norway prohibited tobacco displays in shops, whereas Swiss canton Geneva banned smoking in public places in September.In July, Greek government approved an indoor public smoking ban, and Turkey, though not a EU member, followed Greece, steps to implement a strict ban on lighting up in restaurants and bars, a move that had a huge negative feedback.

Bulgaria’s neighbor Romania has raised tobacco taxes two times in 2009 and plans another increase in 2010 in order to get equal with average EU taxes. Another EU member, Lithuania as well hiked the taxes twice this year, increasing them by 50 cents. Only Croatia turned back from the trend, what was headlined in many news reports across the world by amending the current anti-smoking law to permit smoking in restaurants and cafes if they comply with certain requirements.

However, these major changes across Europe couldn’t be lossless for the tobacco industry. British American tobacco recently closed its plant in Latvia, dismissing up to 300 workers because hefty taxes that ruined cigarette sales in the country. And Bulgartabac is reportedly close to follow BAT steps.

!!! Annonce !!! Forum Marlboro.