Excise tax on tobacco to be higher than EU recommendation

The Czech Republic, as of next year, will most probably have a higher excise tax rate on tobacco than the EU recommends. According to a new excise tax bill that is part of the reform package currently being discussed in Parliament, the tax is to rise to 1200 crowns per kilogram from 905 crowns, Deputy Finance Minister Dana Trezziova told the CTK news agency on Wednesday. The higher rate was pushed through by the health ministry, Ms Trezziova added.

The gradual increase in the price of cigarettes has led to many Czech smokers buying cheaper brands or rolling their own cigarettes.