Excise tax on tobacco products will increase by 5 percent from 2013, reports Puls Biznesu.

The Ministry of Finance estimates the tax increase will boost its budget by zł.359 million a year, with a packet of 20 cigarettes expected to rise by zł.0.60, 5 percent more than the current cost.

But according to the ministry the exact price is dependent on individual retailers and producers, and the prices they set will in turn impact on how much the government earns in extra revenue.

“The effects can not be accurately estimated due to the fact that the decision on the size of price increases is the sole responsibility of the producers,” the Ministry of Finance wrote in the bill.

However due to the fact that the price of cigarettes will definitely rise the government expects sales to drop by 3 percent from the start of next year.

Poland A.M.