TIRANA, Oct. 21 – Rising cigarette prices due to higher excise rates have considerably curbed tobacco imports in the past six years, with thousands of smokers shifting to cheaper domestically produced hand-rolled tobacco due to unaffordable prices.
Data published by the finance ministry show cigarette imports dropped to 1,866 tonnes in the first three quarters of this year, down from 2,089 tonnes during the same period last year and a peak level of 3,056 tonnes in January-September 2010.
Rising cigarette prices due to continuous hikes in customs duties levied on tobacco in an effort to curb widespread smoking and smoking-related diseases has sharply curbed tobacco imports in Albania which in 2014 hit a record low for the past decade.
Data published by the country’s customs administration shows tobacco imports in 2014 hit a record low of 2,976 tonnes, down 20 percent compared to 2013, and one-third less compared to peak level of 4,500 tonnes in 2010.
Unaffordable prices for most smokers have considerably curbed tobacco imports in Albania which meet around two-thirds of the country’s needs, with a rising number of smokers shifting to cheaper domestic hand-rolled tobacco, most of which is traded informally, traders say.
Tax officers have seized considerable amount of domestically produced tobacco this year traded informally.
Starting this year, the excise duty on 20-cigarette packs has increased by another 20 lek (Euro 0.14), taking the total excise rate to 110 lek (Euro 0.77) per packet.
Cigarette prices in Albania for the most popular brands vary from 200 lek to 300 lek (Euro 1.4 to 2.1) per packet.
With a smoking rate of around 40 percent, one of Europe’s highest, Albanians are estimated to spend more than 300 million euros on tobacco products every year.
