Expert: Tobacco market is threatened by a conspiracy of monopolists

Эксперт: Табачному рынку грозит сговор монополистов

Ukrainians want to be forced to pay for overpriced tobacco

The increase in the minimum prices would deprive Ukrainians of cheap cigarettes.

Raising the minimum retail price of cigarettes in wiping out the available brands that are in demand among Ukrainians and force them to buy expensive products of large manufacturers. So officials do not care about the health of Ukrainians, and about making a profit for himself, wrote on his page in Facebook the expert of the National anti-crisis group, Taras Zagorodnii.

According to experts, the Cabinet established a working group, developing the idea of raising the minimum retail prices of up to 22 UAH for a pack, and from 1 January 2018 to 28 hryvnia for a pack. Her work has involved high profile Association ukrtûtûn, which unites the leading manufacturers FLP Morris Ukraine, J. Ti Ukraine, Imperial tobacco Production Ukraine and V. A. T.-Pryluky. Together, these companies control almost 100% of Ukrainian tobacco market.

“Minimum price promote beautiful and creative. Introduce invented the coefficients, whose main aim is the ousting from the market of cheap cigarettes. Officially a noble goal — to increase revenues. In fact is the creation of monopolies and the destruction of the Ukrainian manufacturers. When competitors are destroyed, prices will soar even higher. It’s a classic cartel,” – said the expert.

Zagorodnii said that the prescription anti-monopoly conspiracy designed long ago: “we Need to ban the sale of cigarettes below cost price with the tax cost of the manufacturer without unknown factors — as is done in many European countries”.

The actions of the Association ukrtûtûn should arouse the keen interest of the Antimonopoly Committee. “They say that they have already started to be interested” – sums up your post the expert.

We will remind, in December of 2016, the President of Ukraine Petro Poroshenko has signed the law on increase of excise duty on alcohol and tobacco products.

Earlier media reported that in Ukraine the production of cigarettes containing tobacco or tobacco mixtures with tobacco substitutes in 2016, increased by 5.7%.