The governent will oppose a planned EU directive designed to raise the excise duty on cigarettes and thin-cut tobacco, as it would result in dramatic price increases, the Finance Ministry announced on Tuesday.

Under the proposed legislation, as of 2014 the minimum share of the tax in cigarette prices would jump to 63% from the current 57%, with the minimum amount raised from euro 64 to euro 90 per 1,000 cigarettes.

While Poland would be given an extra year to introduce the hike, the new rules would eventually raise cigarette prices by 50%, hitting sales and fuelling demand for black market sources or illegal substances, according to Krzysztof Kępiński of BAT Polska.

Source: Rzeczpospolita (P.M.)