Tobacco" excise stopped

The threat of smuggling has been convincing fight against smoking ...
November 11 President Viktor Yushchenko vetoed the passage of the Verkhovna Rada of Ukraine on October 22 Law "On rates of excise duty on tobacco products." This law, as we have been provided for an increase in ad valorem excise rate (tax rate as a percentage of turnover realization of the goods) from 20% to 36%. And if the President signed into law, the increase would have a third this year.
But Viktor Yushchenko vetoed it. For many, such a step head of state was a surprise. Recently a group of deputies, experts and NGO representatives stated that "the President's decision is of great surprise, because it is inconsistent with its stated course of the nation's health and the European integration of Ukraine".
Yushchenko recalled its position 2 years ago, when, how, like the Coalition of NGOs and Initiatives "For a smoke-free Ukraine," President of the National Forum "Healthy Nation" announced "Seven initiatives of the President of Ukraine to improve the health of the Ukrainian people." The first of these initiatives was to "reduce the harmful effects of smoking on health. To achieve this, proposed a set of activities, the first of which was an increase in excise taxes on tobacco products.
They ask each other fighters against smoking, and why the President signed all previous laws on raising excise taxes on tobacco products, but did not want to do now?
Sam Viktor Yushchenko explained his decision in the first place the desire to avoid the smuggling, which warned tobacco companies. "With the passing of the amount of excise tax in the price of a pack of cigarettes without a filter will be approximately 4,3 times higher than in Russia, and cigarette filters - 3,3 - 3,8 times ... - it is in the proposals of the President to law, returned to the Verkhovna Rada. - This creates the risk of income in Ukraine contraband products.
This agrees with President Boris Kushniruk economic expert. Speaking for the restriction of smoking areas, Kushniruk, however, said that with the excise should be cautious. "Provoke a sharp increase in smuggling very easy ... Excise tax must be applied carefully so as not to destroy domestic production", - said he was "Day".
But the President, except for contraband, and for experiencing a decrease in revenue to the state budget, reducing the volume of production and release of workers in the sector, which, according to the head of state, possibly with the next increase in excise duties.
In the Coalition for a smoke-free Ukraine ", in turn, give data on which in 2000-2008 years the production of cigarettes in Ukraine increased from 59 billion to 130 billion pieces. But the number of employed in tobacco factories during this time, according to Goskomstat, decreased from 6156 to 4139 people ...
But the main thing that is contrary to veto the law enunciated by the rate of recovery of the nation, I am sure the head of the National Board of Health under the President of Ukraine Mykola Polishchuk. "For me it was strange that the President vetoed the law - he admitted to reporters recently. - The more that I knew in advance about the intentions of signing.
According to Polishchuk, every day from tobacco kills 300 people every hour - 11 active and 1 passive smokers. "Compare the current epidemic of influenza, during which three weeks less than 200 people died, so how many people die every day from smoking" - he said. Polishchuk argues that the price of cigarettes for our people is of great significance. "Young people and adolescents can be influenced only by the price, because the discipline they know how - emphasizes the Chairman of the National Health. Due to this, in Ukraine for four years managed to reduce the number of smokers from 41 to 31%, according to Polishchuk. This, he said, more than a million people ...
Meanwhile, ex-deputy minister of economics and advisor to the First Vice-Prime Minister Vladimir Ryaboshlyk believes that Viktor Yushchenko still sign the legislation to raise the excise taxes.
"I believe that the services that are prepared for the President of this decision, entered the head of state in error", - he said at a press conference. According Ryaboshlyka, such actions "are not joined with the President's position on European integration". "He will understand the situation, and still sign the law. I'm sure "- he said.
Such confidence is not shared Ryaboshlika MP from the BYuT Oleg Lyashko. In his view, the President vetoed the law is absolutely consciously. Moreover, Lyashko accused the head of state in lobbying the interests of the tobacco business.
"According to my information, for the veto of this law on account of structures that hold the election campaign of the presidential candidate Yushchenko, has been transferred more than five million dollars, - said Lyashko. - We have information, we now verify that we are talking about the transfer of funds from tobacco companies to various charities in some way involved in the electoral campaign of Viktor Yushchenko. However, I must admit that five million dollars - this is not the last sum, which was agreed. There is reason to consider the information that the planned additional charges for veto this law. "
Byutovets promised to tell the whole story in more detail as soon as more evidence. Meanwhile, refuting fears that Yushchenko concerns the reduction of budget revenues, Lyashko end of the year from excise taxes on tobacco products predicts about 9 billion hryvnia. And in 2010 - about 15 billion hryvnia ...
To have entered the budget even more, and cigarettes became more expensive and therefore not as accessible, the head of the Coalition for a smoke-free Ukraine, Sergei Gonchar, on behalf of 50 NGOs appealed to the President demanding yet to change its position. For hedging and appealed to the Verkhovna Rada to take into account some of the comments of the President, to make this bill for consideration and vote again.
However, this will be problems, sure Lyashko. The President has no right to withdraw a veto, he said, so the only correct way - that consideration of the law again in Parliament. Indeed, as noted by the deputy, the Verkhovna Rada will be unable to overcome a veto.
"There is no hope that the parliament pick up 300 votes. Also, we can not take into account the amendments of the President, because, according to regulations still need 300 votes to pass this law after the veto "- the politician added.
According to him, the only option - is to send legislation to committee, and decide in the new edition. "Such a proposal, we will articulate on Monday at the conciliatory council", - said the People's Deputy.
But the paradox is that, without waiting for the decision of the President, from November 1, tobacco companies have increased the maximum retail prices for some brands of cigarettes, as already written "The Day". Should we expect them to decline to veto the law, is still unknown. The professional associations and the tobacco companies to comment on this matter shall refrain ...
General Director of the Ukrainian association of manufacturers of tobacco products "Ukrtabak Valentina Khomenko said" Day ", that Viktor Yushchenko had every reason to veto the law.
"Unfortunately, in recent years, violations of basic laws for the regulation of tax and budget relations have acquired a systematic character and principles of regulatory policy set out in the Law of Ukraine" On the basis of state regulatory policy in the sphere of economic activity ", generally ignored when making regulatory instruments - says Khomenko. - In a country where there is a systemic economic crisis, and that the rating of purchasing power is the penultimate place in Europe and one of the lowest level of minimum wages and GDP per capita tax increase seven times in little more than one year is a manifestation of economic shortsightedness and irresponsibility.

Decrease in sales of cigarettes in the USA compels manufacturers to be interested in nicotinic chewing elastic bands

Reynolds American has decided to earn on desire of smokers to throw an addiction
The American manufacturer of cigarettes second for sales volumes, company Reynolds American which is letting out such marks as Camel and Pall Mall, intend to be engaged seriously in sale of the means helping smokers to struggle with an addiction.
As informs edition The Wall Street Journal, with that end in view the American tobacco giant carries on negotiations for acquisition of the Swedish company Niconovum making a chewing elastic band and sprays, containing nicotine. These products allow smokers to receive regularly necessary doses of nicotine, having refused inhalation of a harmful cigarette smoke.
In case of successful end of the transaction which volume is estimated approximately in 30 million euro, табакозаменители should meet with approval of the American Management under the control of a foodstuff and medical products, only after that they can get on a counter.
Many American tobacco companies already are engaged in pharmaceutical business, however Reynolds becomes the first, selling means on struggle against smoking. It, by the way, not the first attempt of the company to sell to smokers табакозаменители, earlier Reynolds has started manufacture снюса Camel – chewing tobacco.
Purchase Swedish Niconovum is attempt from outside Reynolds to struggle with falling of consumption of tobacco in the USA. About 1998 volumes of cigarette sales in America decrease on the average on 2 % a year. Recently the entered interdiction for smoking in public places will strike on profits of the tobacco companies even more – by estimations Fitch Ratings, in 2009 falling of demand for cigarettes will make in the USA from 5 to 7 %.

45 billion on a wind

Strange business, in the country financial crisis, and 45 billion the tenges literally rolling on the earth, nobody wishes to bend and pick up!
The coalition “For Kazakhstan, free from a tobacco smoke”, 720 organisations uniting more and 42 000 physical persons, has addressed to the president of the country with the video reference. Members of a coalition urge to raise tobacco excises. Till now the foreign tobacco companies completely supervising manufacture of cigarettes in Kazakhstan, happily got off with only cosmetic increase in the taxation.
According to a coalition, for last four years the quantity of smokers in the country has increased with 22,6 to 30 percent from all population, mainly at the expense of occurrence of nicotinic dependence at children and teenagers. Every eighth schoolboy smokes.
The main reason of youthful smoking - it is paradoxical the low prices for cigarettes which become more accessible than sweets and soft drinks. The prices, in turn, are defined by the superpreferential taxation of the tobacco companies - manufacturers of cigarettes give to Kazakhstan in the form of excises only 12 tenges for a pack of cigarettes. For comparison: in the European Union countries the excise makes 2,02 euros, or 451 tenges for a pack plus of 57 percent of a surtax from a retail price.
In Russia the excise on tobacco is indexed annually and has already reached in recalculation on rouble 96 tenges on a pack, that is on the average 54 percent of its cost price. In Ukraine the taxation of the tobacco companies has been sharply increased in 2008 that has allowed to redistribute the received means for pensions and wages.
At us have gone even on such extremely unpopular measure as a delay of increase of the salary to doctors and teachers, but for some reason preserve the tobacco companies. Meanwhile increase of the excise to 40 tenges on a pack of cigarettes would allow to receive to 45 billion tenge of additional tax gathering and to solve many social problems.
In 2008 increase of tobacco excises already was on the agenda in the parliament senate, and only one voice contra - 19 against 18 - has allowed manufacturers of cigarettes to get off light. Now, when tobacco smoking distribution to Kazakhstan has grown into an epidemic, the adequate taxation of the tobacco companies is “that the doctor has registered”.
Two in one - to rescue from a smoky infection of children and to rescue social expenses of the country. When it still to do, if not now?