Tobacco.org

Vice tax might overturn inflation prognosis 

The introduction of the vice tax might add to the inflationary pressure, says Central Bank Governor Mugur Isarescu (photo), who is concerned about this new development because tobacco accounts for a major share in the consumer’s basket. “I am concerned about this vice tax because I cannot help thinking how large a share cigarettes have in the consumption basket – half of the one for bared, for instance. It could really overturn our inflation target”, Isarescu said yesterday.

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