Excise duty change boosts cigarette prices

4 Dec, 2006 10:54 / Updated 17 years ago

Cigarette prices in Russia have jumped by an average of 15 % as the two biggest players – British American Tobacco and Phillip Morris – decided to raise shop prices.

The move anticipates an increase in tobacco excise duty that comes into force next year. The excise rate will be based on retail instead of the wholesale price. Producers will be allowed to change prices once a month, and the current increase covers the whole of January.