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Increase proposed on tobacco excise rate

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“It has been proved than an increase by 10 percent in tobacco prices would lower the smoking rate by 4 percent,” said Health Minister Tavo

TIRANA, Oct. 8 – The Ministry of Health has proposed another increase to the excise tax on tobacco to curb the country’s high smoking rate estimated at 40 percent of the population. The proposal was made this week by Health Minister Vangjel Tavo who admitted the anti-smoking law in force since 207 has failed and needs to be amended.
“It has been proved than an increase by 10 percent in tobacco prices would lower the smoking rate by 4 percent,” said minister Tavo referring to studies by the World Health Organization.
The Health Ministry has also demanded the review of the fines imposed for smoking in enclosed facilities which will also include bar customers and workers in institutions.
The Health Ministry says the WHO recommends a fiscal burden of 70 to 80 percent of the tobacco prices.
In Jan. 2011, the excise on tobacco products was raised by 20 lek per packet, climbing to 70 lek, up from 50 lek previously.
Cigarette prices in Albania for the most popular brands vary from 180 lek to 250 lek per packet.
The draft law was compiled in cooperation with the Health Ministry and is intended to bring tobacco excise taxes in line with regional and EU countries, considering that currently, a packet of cigarettes in Albania is quite cheaper than in EU countries.
Albania has 872,000 smokers out of a population of three million. Health experts are particularly troubled by the fact that some 15 per cent of youths aged between 13 and 15 have reportedly taken up smoking.
Albanians spend more than 300 million euros on tobacco products every year.
Although smoking has been banned in enclosed public spaces since May 2007, the law continues not being implemented mainly because of lack of appropriate structures and necessary staff to supervise bars and restaurants.
Finance Ministry data show some 1,944 tonnes of tobacco was imported in the first seven months of this year, up 23 percent compared to the same period last year, but down 11 percent and 5.4 compared to 2010 and 2009 showing that the crisis impacts and rising prices have cut smoking rates in Albania.

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