In Germany excise taxes on tobacco have been raised from May 1st
From May 1st tobacco products in Germany became more expensive in Germany. During the last months before excise taxes increase demand on cigarettes has grown a lot. However, they will advance four years at a run.
In Germany from May 1st 2011 excise taxes for tobacco products increase. Price of one pack of cigarettes will grow in average by 20 cents. And this increase of excise taxes will be only first stage - totally till 2015 are provisioned five stages. Annually during this period rice of one pack of cigarettes will increase by 4-8 cents, but price of 40 grams of loose tobacco - by 12-14 cents.
Increase of prices has caused feverish demand on tobacco products. According to German Federal Office of Statistics, for the first three months of 2011 in Germany were sold 17.5 per cent more cigarettes y-o-y. Demand on loose tobacco has increased by one fourth. By 18 per cent have increased sales of pipe tobacco although excise taxes namely on this kind will not be increased.
Excise taxes on tobacco bring in German budget 13 billions annually.
Though, merging of German tobacco industry Companies forecast reduce of demand on tobacco in 2011 as result of price increase. However, this reduce will be less than it was expected at the beginning of the year when was supposed that tobacco consumption will fall by 5 per cent.
The Head of Union Franz Peter Marx considers that a lot depends on how faithful to products sold on internal market will consumers remain and what part of those who prefer to buy cigarettes from neighbor countries will be. Excise taxes on tobacco bring approximately 13 billions in German budget annually.