British American Tobacco Bulgaria Statement on applying the new excise for imported cigarettes in the country

Sofia, December 26 - Bulgarian American Tobacco is among the two largest tobacco producers in the world and one of the biggest importers in Bulgaria.

Based on our international experience and deep knowledge of the local market, we state that applying the new excise and the new prices to cigarettes which were already imported with excise and duty paid prior to January 1rst 2002 is in direct contradiction with EU Directive 92/12 (art. 6) on the Movement and Holding of Excisable Products.

What is more important: given the reality of the market, it is impossible to ensure an efficient and proper collection of the additional excise. Massive and unfortunate speculation already took place and the big risk is now that consumer is going to suffer and pay from January an additional tax which the government most probably will never collect.

Our recommendation, in line with EU directive, is to keep the new legislation simple and to allow sale of cigarettes at the consumer price printed on the banderol till full clearance of the corresponding physical stock.

We do believe also that this recommendation is based on natural commercial sense and it will be fully supported by the trade.

British American Tobacco Bulgaria had already communicated its position to the proper authorities and is deeply satisfied that officials of the Ministry of Economy expressed same position independently from ours. BAT Bulgaria is also deeply engaged of creation of fully working and real market economy and is ready to participate in the process of establishing adequate, beneficial European tax legislation.

Philippe Charles, General Manager, BAT Bulgaria

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