Price war at Czech tobacco market

Tobacco market in the Czech Republic is witnessing a price war among major cigarette producers, the daily Pravo reports. The price conflict started when the JT International tobacco company only increased the price of its flagship Camel brand to 64 crowns, or just over 3.5 US dollars, due to the VAT increase in 2007. As a result, the sales of Camel cigarettes in the Czech Republic have tripled. Other producers, including Phillip Morris and International Tobacco, have reacted with bringing down the prices of their products as well. In 2008, the prices of cigarettes and other tobacco products will rise again due to the increase in consumer tax.