Sunday, June 19, 2011

The demand for contraband cigarettes can grow

The tobacco industry are concerned about the norm of law "On insider trading" on the introduction of quotas for trade in tobacco products. This initiative, according to them, increase the tax burden on business and could trigger a rise in demand for contraband cigarettes. Recall the named bill, developed the State Committee, to approve rule according to which trade in tobacco products subject to quota regime, with the trade to be implemented in specially designated areas. The order of quotas at the same time taken by the Cabinet of Ministers of Ukraine, and quotas are established on the basis of availability of shopping facilities with the implementation of tobacco per 1000 inhabitants. In the tobacco company "JT International Company Ukraine" (JTI) clarify that the authors of the bill propose to establish a register of trade objects that implement the tobacco products and impose restrictions on sales of tobacco products in one or another point of trade, depending on how many these points have a thousand people. Rosters outlets should be updated on a quarterly basis by local authorities, and submitted to the tax administration. "This means an additional burden on the first and second - indicate a JTI. According to the company, it remains unclear how it will set the number of residents in the area of ??commercial sites, and by what criteria will be established quota. The bill, said tobacco companies are also does not account for seasonality, and many commercial properties are working in seasonal mode. Also, representatives of the tobacco industry admit that this initiative could provoke a rise in demand for contraband tobacco products, both from the sellers and from buyers, as the first can not control the availability of products, and second, respectively, may one day do not find cigarettes in a shop near the house.

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