Tobacco.org

• Parliament hikes cigarette excise tax 

In need of cash because of the stalled privatization of state assets and unexpected costs from last month’s flooding in western Ukraine, lawmakers unexpectedly doubled excise taxes on cigarettes last week.

The increase, which came as parliament met in a special session on July 31 to approve $1.2 billion for flood relief, is more symbolic than substantive, experts said. Even with the modest hike, Ukraine will remain home to some of the world’s cheapest cigarettes and, consequently, one of the highest smoking rates, experts added.

If approved, cigarette prices are expected to increase by only an estimated 15-20 cents per pack in a nation where popular brands still sell for $1 or less.

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