Proposal of the Government of Kyrgyzstan for a total ban on tobacco advertising in mass media has received approval from the Committee of Parliament on social policy, "Interfax-Kazakhstan", with reference to the press service of the Parliament. It is expected that the changes in the law "On Advertising" will be taken soon.
During his speech at the meeting of Committee of Parliament head of the Ministry of Health of Kyrgyzstan Marat Mambetov noted that this measure is to reduce the number of smokers residents of the state. "Full closed to all forms of advertising in social media reduces the attractiveness of smoking and reduces tobacco consumption, especially among youth," - he said. The minister also drew attention to the experience of other countries in this regard. According to him, studies have shown that after entering the prohibition in some countries, their population has consumed 25 percent fewer cigarettes.
At the same time, the agency notes that the ban on cigarette advertising can strongly affect the local media. At present, advertising of tobacco products for many of the media is one of the main sources of income.
marți, 17 noiembrie 2009
miercuri, 4 noiembrie 2009
Altria kicking the tobacco industry 3Q earns; analysts eye cigarette volume, loss of market share
Altria Group inc. presents its third-quarter results on Wednesday. Following is a summary of key developments and analyst opinion related to the period.
OVERVIEW: Richmond, Virginia based seller of cigarettes Marlboro, Black and Mild cigars, and in Copenhagen and Skoal smokeless tobacco products, is fighting the loss of market share.
Nevertheless, the owner of the largest U.S. cigarette maker, Philip Morris USA, said its second quarter profit rose 9 percent to 1.01 billion dollars, both to reduce costs and complex smokeless tobacco company UST Inc., industry recovered somewhat during this period as retailers have returned to visit on cigarettes. Retailers and wholesalers had reduced their orders ahead of the one-time federal tax on their inventory in April. Consumers are also adjusted to higher prices, which included the new federal taxes.
In the second quarter, the company said, declining among all cigarette brands, including Marlboro, Parliament, Virginia Slims and substantive. Marlboro, the best-selling brand in the U.S., lost 0.6 points of market share to end up with 41.2 percent of the U.S. market, according to Information Resources inc.
At the end of July, Altria stopped production at its Cabarrus County, NC, a cigarette factory, to help bring its production capacity in line with a decrease in cigarettes sold in the U.S., Altria said the closure would save $ 188 million in 2011. It said it expected pretax charges of about $ 175 million in the second half of 2009, primarily for the closure of the plant.
In the third quarter of last year, Altria said it earned $ 867 million on revenue of $ 5.24 billion.
In numbers: Analysts polled by Thomson Financial on average expect Altria to post a profit of 46 cents per share for the third quarter on revenue of $ 4.66 billion.
ANALYST TAKE: Analysts expect no quarter will be the first real indicator of the true volume of cigarettes per year in the industry saw a decline in the first half of the increase in federal taxes, which came into force on April 1.
Credit Suisse analyst Thilo Wrede wrote in the Oct. 13 investor note that he expects, Altria, is expected to post continued loss of market share and decline. But Deutsche Bank North America analyst Marc Greenberg said Tom reduction will be offset by higher prices.
Greenberg said the positive income based on the ability of Altria, to match the price in sales and its focus on profitable growth makes the company a "compelling value".
WHAT'S AHEAD: industry continues to see the effect of the U.S. Food and Drug Administration new authority to regulate tobacco granted in June. He believed that regulation hurt Altria least because the more stringent rules on marketing and new product introductions could strengthen its position as market leader.
Wall Street will look at ways to further smoking bans, higher taxes and regulation might affect cigarette volumes and profitability.
STOCK PERFORMANCE: During the quarter ended September 30, shares of Altria rose 6.8 percent to the end of the period at $ 17.81. Over the past 52 weeks, the stock traded between $ 14.34 and $ 20.74.
OVERVIEW: Richmond, Virginia based seller of cigarettes Marlboro, Black and Mild cigars, and in Copenhagen and Skoal smokeless tobacco products, is fighting the loss of market share.
Nevertheless, the owner of the largest U.S. cigarette maker, Philip Morris USA, said its second quarter profit rose 9 percent to 1.01 billion dollars, both to reduce costs and complex smokeless tobacco company UST Inc., industry recovered somewhat during this period as retailers have returned to visit on cigarettes. Retailers and wholesalers had reduced their orders ahead of the one-time federal tax on their inventory in April. Consumers are also adjusted to higher prices, which included the new federal taxes.
In the second quarter, the company said, declining among all cigarette brands, including Marlboro, Parliament, Virginia Slims and substantive. Marlboro, the best-selling brand in the U.S., lost 0.6 points of market share to end up with 41.2 percent of the U.S. market, according to Information Resources inc.
At the end of July, Altria stopped production at its Cabarrus County, NC, a cigarette factory, to help bring its production capacity in line with a decrease in cigarettes sold in the U.S., Altria said the closure would save $ 188 million in 2011. It said it expected pretax charges of about $ 175 million in the second half of 2009, primarily for the closure of the plant.
In the third quarter of last year, Altria said it earned $ 867 million on revenue of $ 5.24 billion.
In numbers: Analysts polled by Thomson Financial on average expect Altria to post a profit of 46 cents per share for the third quarter on revenue of $ 4.66 billion.
ANALYST TAKE: Analysts expect no quarter will be the first real indicator of the true volume of cigarettes per year in the industry saw a decline in the first half of the increase in federal taxes, which came into force on April 1.
Credit Suisse analyst Thilo Wrede wrote in the Oct. 13 investor note that he expects, Altria, is expected to post continued loss of market share and decline. But Deutsche Bank North America analyst Marc Greenberg said Tom reduction will be offset by higher prices.
Greenberg said the positive income based on the ability of Altria, to match the price in sales and its focus on profitable growth makes the company a "compelling value".
WHAT'S AHEAD: industry continues to see the effect of the U.S. Food and Drug Administration new authority to regulate tobacco granted in June. He believed that regulation hurt Altria least because the more stringent rules on marketing and new product introductions could strengthen its position as market leader.
Wall Street will look at ways to further smoking bans, higher taxes and regulation might affect cigarette volumes and profitability.
STOCK PERFORMANCE: During the quarter ended September 30, shares of Altria rose 6.8 percent to the end of the period at $ 17.81. Over the past 52 weeks, the stock traded between $ 14.34 and $ 20.74.
joi, 29 octombrie 2009
Cowboy Malboro
Leo Burnett specialises on creation of advertising characters such as Yolly Green Giant, Morris cats, Keebler Elfy, Charilie Tune. Having started to defeminization cigarettes Marlboro, he has decided to use a series of injections тестостерона which image of the captain, the sportsman, the adventurer, the war correspondent, the house of the builder and others is. The first in it to a number was the cowboy. No more than 3000 professional cowboys to remain in the USA.
Бернетт spoke much and it does it very accurately. An advertising campaign got on. Behind one brand Marlboro of year has moved from last place on the fourth, being in the list of cigarettes of champions. Campaign have decided to forget about the captain and to keep Cowboy to be just in case. The first invited for shootings were professional models among which nobody knew, from what party to approach to a horse. Gabbers to replace them. Only imagine the person in dark blue, the faded jeans, cowboy's boots with spurs the prompt! It was improbably ridiculous! At last real cowboys in Texas and Montana have been compelled to search for advertising agencies.
In 1955 the agency has decided to add a tattoo in the form of the trade mark on cowboy's a hand. One of the sitting has recollected that before shootings, it made within three minutes, and a tattoo are applied within three hours. In 1962 advertising agency Burnett has got all rights to the scenario "Magnificent seven" and has added the following phrase in it for TV advertising: Give there where taste is. Marlboro the country. Since then, Cowboy Malboro have held a firm place among the most successful advertising images and Marlboro is at top from the most popular cigarettes all over the world.
Бернетт spoke much and it does it very accurately. An advertising campaign got on. Behind one brand Marlboro of year has moved from last place on the fourth, being in the list of cigarettes of champions. Campaign have decided to forget about the captain and to keep Cowboy to be just in case. The first invited for shootings were professional models among which nobody knew, from what party to approach to a horse. Gabbers to replace them. Only imagine the person in dark blue, the faded jeans, cowboy's boots with spurs the prompt! It was improbably ridiculous! At last real cowboys in Texas and Montana have been compelled to search for advertising agencies.
In 1955 the agency has decided to add a tattoo in the form of the trade mark on cowboy's a hand. One of the sitting has recollected that before shootings, it made within three minutes, and a tattoo are applied within three hours. In 1962 advertising agency Burnett has got all rights to the scenario "Magnificent seven" and has added the following phrase in it for TV advertising: Give there where taste is. Marlboro the country. Since then, Cowboy Malboro have held a firm place among the most successful advertising images and Marlboro is at top from the most popular cigarettes all over the world.
State keeps an eye out fake cigarettes
Rapid City, S.D. - South Dakota smokers who cross the border to flee to the U.S. $ 1-Pack increase the tax on cigarettes is a violation of state law when they bring cigarettes back in the state. Bootlegging, if sufficiently large, may result in penalties and the loss of cigarettes. "Our statute says that the smuggling of cigarettes in South Dakota without tax stamps, and when arrested," said Michael Kenyon, director of property and special taxes for the South Dakota Department of Revenue in Pierre. "We want things and unstamped cigarettes is not in our catalog. Obviously, we are aware of this, usually the seller. We went to the house of someone else. Voters in November approved higher tobacco taxes, including a sharp increase tax on cigarettes $ 1.53 packs. The increase took effect on January 1. cigarettes entering the country without a tax stamp, South Dakota, are illegal, regardless of sex, carton or pack. People who were in more than 2000 cigarettes - or 10 cartons -- may also face a financial penalty. At the 10 cartons, the penalty will be $ 1.53 per Pack South Dakota tobacco tax, or $ 15.30 per carton, plus an additional penalty of 10 percent, or $ 1.53 per pack . In some cases, revenue officials may also try to regain the sales tax is not paid if the cigarettes were purchased in another state if the state does not have a tax of 4 percent sales tax in South Dakota. State law enforcement efforts now focused on finding that the outlets in South Dakota are selling cigarettes and other tobacco products that have been properly taxed and stamped. Kenyon said law enforcement agencies will continue to monitor the retail trade, but it is unclear when and whether that work will be extended to individuals. "Apparently We heard about it. We note that the law is, "he said. "As far as organs go, we're going to wait and see what the problem is. The increase in tax is less than one month." Per Pack Cigarette taxes in neighboring countries amounts to 60 cents in Wyoming, 44 cents in North Dakota, 64 cents in Nebraska, 36 cents in Iowa, $ 1.70 in Montana and $ 1.49 in Minnesota.
luni, 12 octombrie 2009
Tobacco War
The latest increase in excise taxes on tobacco, which is scheduled to introduce in October, would be the fourth in 2009. However, unstable work of the Verkhovna Rada has hindered the government's plans for the tobacco industry. However, according to the manufacturers, the state has not abandoned its intention to raise excise taxes on tobacco products.
Government is trying to replenish the budget at the expense of excisable goods and tobacco control organizations - to make cigarettes less accessible. The main argument of producers - to buy cigarettes will be less, respectively, and proceeds from the excise tax will be lower than planned. However, certain representatives of the industry, smuggling of cigarettes in Ukraine after the next increase will increase substantially.
Attempt N4
In August, the Cabinet of Ministers submitted a proposal to the Verkhovna Rada to increase from 1 October 2009 an ad valorem component of excise duty on tobacco from 20% to 36% of turnover through an amendment to the bill "On Amending the Law of Ukraine" On State Budget of Ukraine for 2009 "N4707 in preparing its second reading.
According to the coalition of social organizations and initiatives, "For a smoke-free Ukraine" (hereinafter - the Coalition), the next increase in excise duties are designed to achieve two main objectives: increasing revenue and reducing the impact of smoking on human health.
As the advisor to the First Prime Minister of Ukraine Vladimir Ryaboshlyk, in the case of adoption of the draft N4707, October-December 2009 intended to increase revenue to the state budget to 400 mln. But consider the bill in the session hall and could not - because of the unstable operation of the Verkhovna Rada.
In association Ukrtyutyun "believe that the next increase in excise duties in 2009, contrary to the principles of constructing a system of taxation, among them - unchanged tax rates and levies for the fiscal year.
"Authorities again this year initiates increase excise duty on tobacco products. Do not overlook this devastating effects on the domestic tobacco market, and again suggest an increase in excise tax, which would lead to higher prices of tobacco products of Ukrainian origin is 20-30%, at least, disrespect for the legal industry who faithfully pay taxes to the state budget of Ukraine " - say the association.
Cigarette fewer
According to the Coalition, in January-July 2008, the average sale of cigarettes produced in Ukraine amounted to 9,55 billion pieces per month, while revenue from excise taxes on them - 228 mln.
In July 2009, noted in the Coalition, sales amounted to 9,54 billion pieces, and revenue - 985 mln., That is 4 times more. At the same time in January-August 2009 sales volumes of cigarettes decreased by 10%, compared with the same period in 2008, said V. Ryaboshlyk.
Association Ukrtyutyun "also indicates a significant decline in production and sales. According to Goskomstat, which refers to "Ukrtyutyun, production of tobacco products declined from May to July at 25%, and sales volume - more than 27%.
According to estimates by Yuri Kishko, manager of corporate affairs for Imperial Tobacco Ukraine ", in August 2009 produced 9.9 billion cigarettes, which is 20,2% less than in August 2008 (12.4 billion).
In the State Tax Administration of Ukraine (Tax Administration) also confirm the reduction in the supply of tobacco products. According to the deputy chairman of the excise STAU Andrew Filozopa, in May 2009, volumes of sales decreased by approximately 50% (year to year). However, in June, falling sales volumes slowed to 20%, and in July - up to 17%.
However, A. Filozop not answer the question whether the continued slowdown in the fall of the implementation through the year, citing insufficient data for such a prediction.
Treasury receipts
Data on the amount of excise revenue from tobacco workers and the Coalition also diverge. Thus, anti-tobacco organizations say about the significant growth in revenue to the state budget, while the representatives of the tobacco industry point to the shortfall.
According to the State Tax Administration, which refers to the Coalition, the amount of excise tax revenue from tobacco products for 7 months of 2009 increased by 2,4 times (year to year). Total for this period - taking into account the excise tax on imports - the budget was 4 billion 116 mln. (in 2008 - 1,6 billion UAH.).
However, according to official State Tax Administration, in August 2009 the excise tax revenue from tobacco products increased by 3,8 times up to 986,8 mln. (724.8 mln. Year to year). Total for 8 months of 2009 revenues from excise tax of tobacco products increased by 2,6 times to 4,732 billion UAH. (2.903 billion UAH.).
"Ukrtyutyun, in turn, has estimated that the actual amount of excise tax revenue from manufactured and imported tobacco products in Ukraine for the period May-July 2009 amounted to about 65% of projected.
Cigarettes - affordable
In "Ukrtyutyun" note: if the excise tax on tobacco products will be raised again, the consumer will have to accept another price rise. As a result of a May rate hike excise rates on cigarettes at retail on average increased by 1,5-2 grn., Or by 20-30%. At this time, prices will rise another 25%.
Coalition confirms data "Ukrtyutyun" about rising prices, pointing out that the price hike will make cigarettes less accessible to consumers, which, in turn, will reduce the number of smokers in Ukraine.
Most of all, according to the Coalition, will rise in the price is expensive brands of cigarettes. Average packet will increase from 5,15 UAH. to 6,40 UAH. but, for example, a pack of "Marlboro" - from 8 to 10 UAH.
Antitabachniki believe that with the next higher level of excise tax in Ukraine will overtake Russia, but still remain much lower than the level of European countries. According to V. Ryaboshlyka, today the price of cigarettes "Marlboro" in Russia, recalculated the hryvnia, UAH 10. for the stack, and in EU countries such as Romania and Bulgaria - 20 and 22 grn. per pack, respectively.
In addition, according to the Coalition, the excise rate in Ukraine is still lower than in EU countries. So, in July 2009 a pack of filter cigarettes in Ukraine cost an average of 5,54 UAH. (0,5 euros), while the share of excises in it - 2,12 UAH. (0,2 euros), significantly below the European level (not less than 1.28 euros per pack).
For its part, the tobacco companies point to the imbalance in the availability of cigarettes, which occurred in Ukraine in 2007-2009. Thus, for 2,5 years, given the level of average wages are, since January 2007, wages increased (adjusted for inflation) at 3.1%, while the price of the best-selling cigarette brand in the same period - up to 40%.
The threat of smuggling
The May increase in the rates of excise duty, according to the tobacco workers, led to a significant influx of smuggled from neighboring countries. Therefore, a new increase in excise taxes can double the volume shadow market, manufacturers are confident.
"In fact, we provoke (in the case of the next increase in excise duties, - Ed.) Sailed smuggling, which has already begun, from Russia", - convinced Ryabenko Constantine, Director of Corporate Affairs CJSC Philip Morris Ukraine ".
According to D. Redko of "JT International Company Ukraine, for 3 months after the increase in excise duties in May 2009, decline in legal production in Ukraine amounted to about 25%.
"If you do not raise taxes, then about 20% of the market will be" black ". If you raise, then the rate of a year we lose about 20% ", - predicts Yu Kishko of Imperial Tobacco Ukraine".
According to him, during the inspection carried out by "Imperial Tobacco" in 17 regions of Ukraine, was found more than 500 points of sale of contraband cigarettes. "Cigarettes (contraband - Ed.) Sold not only on trays, but also in grocery stores, kiosks, pavilions," - he said.
However, while the volume of cigarette smuggling from Ukraine greatly exceed the volume of illegal tobacco products entering the country. "If we compare data on attempts to irregularities in the export of cigarettes from Ukraine and imported to Ukraine, then the number of detentions, the ratio will be 1 to 7, ie at 1 attempt smuggling of cigarettes in Ukraine accounted for 7 cases of illegal export," - noted the director Department organization to combat smuggling and violation of customs regulations Customs Service Andrei Fedkin.
Based on the number of pieces of this relationship, he said, will be 1 to 10, ie at 1 cigarette, which is illegally imported to Ukraine, 10 cigarettes - are exported. In value terms, this ratio will be 1 to 11.
"So for today we have significant excess in trying the illegal export of goods (cigarettes, - ed.) From the customs territory of Ukraine", - pointed out by Customs Service.
Dmitry GOVD
Help. Increasing excise taxes on tobacco products in Ukraine
A significant increase in excise duties on tobacco and tobacco products began in September 2008. In 2009, excise duties were raised by 2 times (in February and May) and if, in the words of the First Adviser to the Prime Minister of Ukraine Volodymyr Ryaboshlyka take into account the indexation of excise on tobacco products in the light of consumer prices, the increases in total for the current year was 3.
On September 1, 2008 came into force the Law "On Amendments to Article 1 of the Law of Ukraine" About rates of excise duty on tobacco products "" N340-VI. Excise tax rates in lump sum per unit sold goods (products) for unfiltered cigarettes, cigarettes amounted to 12,5 UAH. for 1000. for filter cigarettes - 30 UAH. for 1000. In addition, the excise as a percentage of turnover from the sale of the goods for unfiltered cigarettes, cigarettes were 16% for cigarettes filter - also 16%.
1 February 2009 entered into force the Law "On amending some laws of Ukraine concerning the taxation" N797-VI, which the Supreme Rada has raised excise duty on cigarettes without filter - up to 15,6 UAH. for 1000 pieces (previously 12,5 UAH. for 1000 pieces, with the filter - up to 37,5 UAH. for 1000 pieces, up to this - 30 UAH. for 1000 pieces).
May 1, 2009 came into force the Law "On Amendments to Certain Legislative Acts of Ukraine on the excise tax" N1201-VI, which increased the rate of excise duty in the lump sum per unit sold goods: cigarette without filter cigarettes to 35 UAH. for 1000 pcs. (before - 15.6 UAH.), with the filter - up to 60 UAH. for 1000 pcs. (before - 37.5 UAH.). In addition, the rates of excise duty as a percentage of turnover from the sale of the goods have risen to 20% (previously 16%).
C 24 July 2009 the Cabinet of Ministers Decree N861-p approved the excise rate on tobacco products, indexed by taking into account the consumer price (amounting to 115%). Thus, the new specific rates of excise duty to the consumer price index (CPI) for non-filter cigarettes, cigarettes account for 40,25 hrn. for 1 thousand pieces. (previously - 35 UAH.) filter - 69 UAH. for 1 thousand pieces. (previously - 60 grn.).
According to Art. 3 of the Law of Ukraine "On taxation system" one of the principles of constructing a system of taxation is stability - ensure the stability of taxes and duties (mandatory payments), and their rates during the fiscal year. In addition, according to Art. 1 of the Act amendments and additions to the tax laws regarding the increase of tax rates and charges may be made not later than six months before the new fiscal year and shall come into force starting from next fiscal year.
Government is trying to replenish the budget at the expense of excisable goods and tobacco control organizations - to make cigarettes less accessible. The main argument of producers - to buy cigarettes will be less, respectively, and proceeds from the excise tax will be lower than planned. However, certain representatives of the industry, smuggling of cigarettes in Ukraine after the next increase will increase substantially.
Attempt N4
In August, the Cabinet of Ministers submitted a proposal to the Verkhovna Rada to increase from 1 October 2009 an ad valorem component of excise duty on tobacco from 20% to 36% of turnover through an amendment to the bill "On Amending the Law of Ukraine" On State Budget of Ukraine for 2009 "N4707 in preparing its second reading.
According to the coalition of social organizations and initiatives, "For a smoke-free Ukraine" (hereinafter - the Coalition), the next increase in excise duties are designed to achieve two main objectives: increasing revenue and reducing the impact of smoking on human health.
As the advisor to the First Prime Minister of Ukraine Vladimir Ryaboshlyk, in the case of adoption of the draft N4707, October-December 2009 intended to increase revenue to the state budget to 400 mln. But consider the bill in the session hall and could not - because of the unstable operation of the Verkhovna Rada.
In association Ukrtyutyun "believe that the next increase in excise duties in 2009, contrary to the principles of constructing a system of taxation, among them - unchanged tax rates and levies for the fiscal year.
"Authorities again this year initiates increase excise duty on tobacco products. Do not overlook this devastating effects on the domestic tobacco market, and again suggest an increase in excise tax, which would lead to higher prices of tobacco products of Ukrainian origin is 20-30%, at least, disrespect for the legal industry who faithfully pay taxes to the state budget of Ukraine " - say the association.
Cigarette fewer
According to the Coalition, in January-July 2008, the average sale of cigarettes produced in Ukraine amounted to 9,55 billion pieces per month, while revenue from excise taxes on them - 228 mln.
In July 2009, noted in the Coalition, sales amounted to 9,54 billion pieces, and revenue - 985 mln., That is 4 times more. At the same time in January-August 2009 sales volumes of cigarettes decreased by 10%, compared with the same period in 2008, said V. Ryaboshlyk.
Association Ukrtyutyun "also indicates a significant decline in production and sales. According to Goskomstat, which refers to "Ukrtyutyun, production of tobacco products declined from May to July at 25%, and sales volume - more than 27%.
According to estimates by Yuri Kishko, manager of corporate affairs for Imperial Tobacco Ukraine ", in August 2009 produced 9.9 billion cigarettes, which is 20,2% less than in August 2008 (12.4 billion).
In the State Tax Administration of Ukraine (Tax Administration) also confirm the reduction in the supply of tobacco products. According to the deputy chairman of the excise STAU Andrew Filozopa, in May 2009, volumes of sales decreased by approximately 50% (year to year). However, in June, falling sales volumes slowed to 20%, and in July - up to 17%.
However, A. Filozop not answer the question whether the continued slowdown in the fall of the implementation through the year, citing insufficient data for such a prediction.
Treasury receipts
Data on the amount of excise revenue from tobacco workers and the Coalition also diverge. Thus, anti-tobacco organizations say about the significant growth in revenue to the state budget, while the representatives of the tobacco industry point to the shortfall.
According to the State Tax Administration, which refers to the Coalition, the amount of excise tax revenue from tobacco products for 7 months of 2009 increased by 2,4 times (year to year). Total for this period - taking into account the excise tax on imports - the budget was 4 billion 116 mln. (in 2008 - 1,6 billion UAH.).
However, according to official State Tax Administration, in August 2009 the excise tax revenue from tobacco products increased by 3,8 times up to 986,8 mln. (724.8 mln. Year to year). Total for 8 months of 2009 revenues from excise tax of tobacco products increased by 2,6 times to 4,732 billion UAH. (2.903 billion UAH.).
"Ukrtyutyun, in turn, has estimated that the actual amount of excise tax revenue from manufactured and imported tobacco products in Ukraine for the period May-July 2009 amounted to about 65% of projected.
Cigarettes - affordable
In "Ukrtyutyun" note: if the excise tax on tobacco products will be raised again, the consumer will have to accept another price rise. As a result of a May rate hike excise rates on cigarettes at retail on average increased by 1,5-2 grn., Or by 20-30%. At this time, prices will rise another 25%.
Coalition confirms data "Ukrtyutyun" about rising prices, pointing out that the price hike will make cigarettes less accessible to consumers, which, in turn, will reduce the number of smokers in Ukraine.
Most of all, according to the Coalition, will rise in the price is expensive brands of cigarettes. Average packet will increase from 5,15 UAH. to 6,40 UAH. but, for example, a pack of "Marlboro" - from 8 to 10 UAH.
Antitabachniki believe that with the next higher level of excise tax in Ukraine will overtake Russia, but still remain much lower than the level of European countries. According to V. Ryaboshlyka, today the price of cigarettes "Marlboro" in Russia, recalculated the hryvnia, UAH 10. for the stack, and in EU countries such as Romania and Bulgaria - 20 and 22 grn. per pack, respectively.
In addition, according to the Coalition, the excise rate in Ukraine is still lower than in EU countries. So, in July 2009 a pack of filter cigarettes in Ukraine cost an average of 5,54 UAH. (0,5 euros), while the share of excises in it - 2,12 UAH. (0,2 euros), significantly below the European level (not less than 1.28 euros per pack).
For its part, the tobacco companies point to the imbalance in the availability of cigarettes, which occurred in Ukraine in 2007-2009. Thus, for 2,5 years, given the level of average wages are, since January 2007, wages increased (adjusted for inflation) at 3.1%, while the price of the best-selling cigarette brand in the same period - up to 40%.
The threat of smuggling
The May increase in the rates of excise duty, according to the tobacco workers, led to a significant influx of smuggled from neighboring countries. Therefore, a new increase in excise taxes can double the volume shadow market, manufacturers are confident.
"In fact, we provoke (in the case of the next increase in excise duties, - Ed.) Sailed smuggling, which has already begun, from Russia", - convinced Ryabenko Constantine, Director of Corporate Affairs CJSC Philip Morris Ukraine ".
According to D. Redko of "JT International Company Ukraine, for 3 months after the increase in excise duties in May 2009, decline in legal production in Ukraine amounted to about 25%.
"If you do not raise taxes, then about 20% of the market will be" black ". If you raise, then the rate of a year we lose about 20% ", - predicts Yu Kishko of Imperial Tobacco Ukraine".
According to him, during the inspection carried out by "Imperial Tobacco" in 17 regions of Ukraine, was found more than 500 points of sale of contraband cigarettes. "Cigarettes (contraband - Ed.) Sold not only on trays, but also in grocery stores, kiosks, pavilions," - he said.
However, while the volume of cigarette smuggling from Ukraine greatly exceed the volume of illegal tobacco products entering the country. "If we compare data on attempts to irregularities in the export of cigarettes from Ukraine and imported to Ukraine, then the number of detentions, the ratio will be 1 to 7, ie at 1 attempt smuggling of cigarettes in Ukraine accounted for 7 cases of illegal export," - noted the director Department organization to combat smuggling and violation of customs regulations Customs Service Andrei Fedkin.
Based on the number of pieces of this relationship, he said, will be 1 to 10, ie at 1 cigarette, which is illegally imported to Ukraine, 10 cigarettes - are exported. In value terms, this ratio will be 1 to 11.
"So for today we have significant excess in trying the illegal export of goods (cigarettes, - ed.) From the customs territory of Ukraine", - pointed out by Customs Service.
Dmitry GOVD
Help. Increasing excise taxes on tobacco products in Ukraine
A significant increase in excise duties on tobacco and tobacco products began in September 2008. In 2009, excise duties were raised by 2 times (in February and May) and if, in the words of the First Adviser to the Prime Minister of Ukraine Volodymyr Ryaboshlyka take into account the indexation of excise on tobacco products in the light of consumer prices, the increases in total for the current year was 3.
On September 1, 2008 came into force the Law "On Amendments to Article 1 of the Law of Ukraine" About rates of excise duty on tobacco products "" N340-VI. Excise tax rates in lump sum per unit sold goods (products) for unfiltered cigarettes, cigarettes amounted to 12,5 UAH. for 1000. for filter cigarettes - 30 UAH. for 1000. In addition, the excise as a percentage of turnover from the sale of the goods for unfiltered cigarettes, cigarettes were 16% for cigarettes filter - also 16%.
1 February 2009 entered into force the Law "On amending some laws of Ukraine concerning the taxation" N797-VI, which the Supreme Rada has raised excise duty on cigarettes without filter - up to 15,6 UAH. for 1000 pieces (previously 12,5 UAH. for 1000 pieces, with the filter - up to 37,5 UAH. for 1000 pieces, up to this - 30 UAH. for 1000 pieces).
May 1, 2009 came into force the Law "On Amendments to Certain Legislative Acts of Ukraine on the excise tax" N1201-VI, which increased the rate of excise duty in the lump sum per unit sold goods: cigarette without filter cigarettes to 35 UAH. for 1000 pcs. (before - 15.6 UAH.), with the filter - up to 60 UAH. for 1000 pcs. (before - 37.5 UAH.). In addition, the rates of excise duty as a percentage of turnover from the sale of the goods have risen to 20% (previously 16%).
C 24 July 2009 the Cabinet of Ministers Decree N861-p approved the excise rate on tobacco products, indexed by taking into account the consumer price (amounting to 115%). Thus, the new specific rates of excise duty to the consumer price index (CPI) for non-filter cigarettes, cigarettes account for 40,25 hrn. for 1 thousand pieces. (previously - 35 UAH.) filter - 69 UAH. for 1 thousand pieces. (previously - 60 grn.).
According to Art. 3 of the Law of Ukraine "On taxation system" one of the principles of constructing a system of taxation is stability - ensure the stability of taxes and duties (mandatory payments), and their rates during the fiscal year. In addition, according to Art. 1 of the Act amendments and additions to the tax laws regarding the increase of tax rates and charges may be made not later than six months before the new fiscal year and shall come into force starting from next fiscal year.
vineri, 21 august 2009
Big Tobacco joins breast cancer industry to launch a new pink ribbon cigarettes
Big Tobacco has joined forces with the breast cancer industry in the beginning of its latest product, aimed at raising funds for breast cancer research: "Pink ribbon" SlimSmokes cigarettes for women. For every pack of cigarettes sold, the manufacturer promises to donate two cents for the study of breast cancer. "We intend to raise money to help find a cure for breast cancer," said Yin welcome Representative Phillip Porous, creator of the pink ribbon SlimSmokes cigarettes. "Because the longer our customers live, the more they will be able to smoke!"
The pink ribbon cigarettes join many other leading cancer products in the market already sporting pink ribbon symbols, including batteries with toxic heavy metals and most popular products for skin care laced with cancer-causing petrochemical. Pink Ribbons is also found on cancer strengthening nail polish and cosmetics containing Parabéns and other chemicals. Pink Ribbon SlimSmokes will be sold in selected retailers, including bad breath and Beyond, a popular retail toxic home products for consumers.
Shareholders of a top chemotherapy drug producer, ConPfuzer, hailed the new product as a "milestone success for its shareholders and stakeholders," claiming the new cigarettes would simultaneously appeal to women while greatly increasing the demand for chemotherapy treatments of breast cancer tumors.
In Susie B. Wheezie Fund, one of the main cancer-profit organization that helped to deal with a pink ribbon Phillip Porous, welcomed the launch of a new product, stating that "by selling more pink ribbon cigarettes, we will raise awareness of breast cancer, and that will lead to more mammograms, more chemotherapy and radiation treatments that enrich our corporate donors! "
Not all are convinced that raising funds for breast cancer research through the sale of cigarettes to women, it's a good idea. Consumer health promotion and cancer industry critic Mike Adams (aka "Health Ranger") puts into question the sanity of the plan, saying that "Pink ribbons have become the corporate graffiti. They are used to exploit consumers emotional associations for the purpose of selling other products, which are in fact harm them. non-profit cancer groups should be ashamed of yourself to associate your name and their symbols, with any product that contributes to cancer, even for cigarettes, "said Adams.
Mike Adams is the author of the popular breast cancer Deception report making rounds on the Internet. He reveals that Adams calls the lies, corruption and consumer exploitation of breast cancer industry. The report is available at no cost at: http://www.NaturalNews.com/Report_Br ...
Most doctors agree that the inhalation of carcinogens in tobacco smoke is the number 1 cause of breast cancer in the United States, and they warn women against smoking. Interestingly, the number 2 cause of cancer is a chronic deficiency of vitamin D, but not in a medical institution, or cancer of the industry currently expresses any interest in encouraging women to get more vitamin D through sunlight exposure or nutritional supplements . Recent studies have shown that vitamin D stops 77 percent of all cancers to become full-fledged tumors, including breast cancer, prostate cancer, colon cancer and leukemia. The vast majority of women in the United States remain chronically insufficient vitamin D, resulting in their bodies in a state of accelerated tumor growth.
The pink ribbon cigarettes join many other leading cancer products in the market already sporting pink ribbon symbols, including batteries with toxic heavy metals and most popular products for skin care laced with cancer-causing petrochemical. Pink Ribbons is also found on cancer strengthening nail polish and cosmetics containing Parabéns and other chemicals. Pink Ribbon SlimSmokes will be sold in selected retailers, including bad breath and Beyond, a popular retail toxic home products for consumers.
Shareholders of a top chemotherapy drug producer, ConPfuzer, hailed the new product as a "milestone success for its shareholders and stakeholders," claiming the new cigarettes would simultaneously appeal to women while greatly increasing the demand for chemotherapy treatments of breast cancer tumors.
In Susie B. Wheezie Fund, one of the main cancer-profit organization that helped to deal with a pink ribbon Phillip Porous, welcomed the launch of a new product, stating that "by selling more pink ribbon cigarettes, we will raise awareness of breast cancer, and that will lead to more mammograms, more chemotherapy and radiation treatments that enrich our corporate donors! "
Not all are convinced that raising funds for breast cancer research through the sale of cigarettes to women, it's a good idea. Consumer health promotion and cancer industry critic Mike Adams (aka "Health Ranger") puts into question the sanity of the plan, saying that "Pink ribbons have become the corporate graffiti. They are used to exploit consumers emotional associations for the purpose of selling other products, which are in fact harm them. non-profit cancer groups should be ashamed of yourself to associate your name and their symbols, with any product that contributes to cancer, even for cigarettes, "said Adams.
Mike Adams is the author of the popular breast cancer Deception report making rounds on the Internet. He reveals that Adams calls the lies, corruption and consumer exploitation of breast cancer industry. The report is available at no cost at: http://www.NaturalNews.com/Report_Br ...
Most doctors agree that the inhalation of carcinogens in tobacco smoke is the number 1 cause of breast cancer in the United States, and they warn women against smoking. Interestingly, the number 2 cause of cancer is a chronic deficiency of vitamin D, but not in a medical institution, or cancer of the industry currently expresses any interest in encouraging women to get more vitamin D through sunlight exposure or nutritional supplements . Recent studies have shown that vitamin D stops 77 percent of all cancers to become full-fledged tumors, including breast cancer, prostate cancer, colon cancer and leukemia. The vast majority of women in the United States remain chronically insufficient vitamin D, resulting in their bodies in a state of accelerated tumor growth.
marți, 17 martie 2009
Why people smoke cigarettes?
It can be traced to the universal desire for self-expression. None of us ever completely outgrows his childhood. We are constantly hunting for the carefree enjoyment we knew as children. As we grew older, we had to subordinate our pleasures to work and to the necessity for unceasing effort. Smoking, for many of us, then, became a substitute for our early habit of following the whims of the moment; it becomes a legitimate excuse for interrupting work and snatching a moment of pleasure. "You sometimes get tired of working intensely," said an accountant whom we interviewed, "and if you sit back for the length of a cigarette, you feel much fresher afterwards. It's a peculiar thing, but I wouldn't think of just sitting back without cigarettes. I guess a cigarette somehow gives me a good excuse."
Most of us are hungry for rewards. We want to be patted on the back. A cigarette is a reward that we can give ourselves as often as we wish. When we have done anything well, for instance, we can congratulate ourselves with a cigarette, which certifies, in effect, that we have been "good boys." We can promise ourselves: "When I have finished this piece of work, when I have written the last page of my report, I'll deserve a little fun. I'll have a cigarette."
As we have said, to explain the pleasure derived from smoking as taste experience alone, is not sufficient. For one thing, such an explanation leaves out the powerful erotic sensitivity of the oral zone. Oral pleasure is just as fundamental as sexuality and hunger. It functions with full strength from earliest childhood.
A cigarettes not only measures time, but also seems to make time pass more rapidly. That is why waiting periods almost autuomatically stimulate the desire to smoke.
Most of us are hungry for rewards. We want to be patted on the back. A cigarette is a reward that we can give ourselves as often as we wish. When we have done anything well, for instance, we can congratulate ourselves with a cigarette, which certifies, in effect, that we have been "good boys." We can promise ourselves: "When I have finished this piece of work, when I have written the last page of my report, I'll deserve a little fun. I'll have a cigarette."
As we have said, to explain the pleasure derived from smoking as taste experience alone, is not sufficient. For one thing, such an explanation leaves out the powerful erotic sensitivity of the oral zone. Oral pleasure is just as fundamental as sexuality and hunger. It functions with full strength from earliest childhood.
A cigarettes not only measures time, but also seems to make time pass more rapidly. That is why waiting periods almost autuomatically stimulate the desire to smoke.
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