The minimum price of cigarettes is a monopoly conspiracy, I’m sure countrys.
In establishing minimum wholesale release and retail prices on tobacco products interested manufacturers of expensive cigarettes and the government of Ukraine builds on the tobacco market monopoly scheme. So says the expert of the National anti-crisis group, Taras Zagorodnii.
The expert notes that the proposed SFS innovations best of the largest tobacco manufacturers, which control 95% of the tobacco market in Ukraine, Philip Morris Ukraine, British American tobacco Sales and Marketing Ukraine and JT international Ukraine. In his opinion, these companies using the size of the minimum wholesale release and retail prices on tobacco products in Ukraine are trying to create a monopoly in the tobacco market with the support of officials of the higher echelons of power.
“The establishment of the minimum wholesale release and retail prices on tobacco products will completely destroy the domestic tobacco industry of Ukraine, will lead to a total reduction of jobs in the industry and stop the flow budget significant sums, will ensure the growth of the black market tobacco smuggling and the enrichment of foreign manufacturers” – said countrys.
He also notes that the Cabinet decision on the minimum wholesale release and retail prices on tobacco products is contrary to the Association Agreement of Ukraine with the EU and cannot be transposed into Ukrainian legislation.
Countrys reminded that minimum retail prices for tobacco products have repeatedly been the subject of consideration in the European courts, which have invalidated and canceled such government decisions. So, in 2000-2010 minimum retail prices on cigarettes, introduced in Ireland, Belgium, Luxembourg, Greece, Italy and Austria were abolished by the decisions of the European non-conforming with the EU legislation. “According to part 1 article 15 of the EU Directive 2011/64 / EU of 21.06.2011 informed manufacturers and importers of tobacco free to determine the maximum retail prices of each of their products. And the introduction of minimum retail prices restricts economic competition between manufacturers of tobacco products that will lead to complete monopolization of the market of tobacco products”, – said the expert.
We will remind, in December the President of Ukraine Petro Poroshenko has signed the law on increase of excise duty on alcohol and tobacco products.