The government leaves the tax for tobacco for heating by 80 percent, which is also reflected in the prices. The toilet warns that the tax increase can be counterproductive.
For transformer chairman Wolfgang Streißnig, the government shoots the target with the project. Schreißnig, who himself runs a Carinthian transformer at the Slovenian border, told the “Krone”: “Now the share of imported from abroad was 36 percent as high as nowhere.” That should continue to rise now. “As a result, the tax authorities avoid 72 million euros per year.
Because a ride across the border is increasingly paying due to the larger price differences. Many therefore prefer products from abroad, because the product selection in Austria is very low and “heats” is currently only one product on the market.
With April, prices in the toilet are increasing
From April manufacturer Philip Morris will increase prices by 50 cents per package. If you want to buy even cheaper, you must hurry. If the tax increase was fully passed on, this would even have been a price increase of one euro.
The comparison with abroad will be different in the future. The products will only be more expensive in Germany and Switzerland in the future. In Slovenia and Slovakia you pay EUR 4.70 less for a package of the same product, at least one euro less in Hungary. It is also cheaper in the Czech Republic. You also have to pay less in Croatia and Serbia. Here it is 4.30 and 3.20 euros per package.
And in all these countries there are also products from other manufacturers that are even cheaper. In Slovakia, the cheapest products in the Fiit and Delia brand already start at 4 euros per pack.
Millions of metabolic people miss
Due to the higher tax, the transformers fear their income. All in all, due to the massive tax increase, the sellers of tobacco will probably pass eight million euros, the loss as a result of the sale above the border is not yet included. An obstacle for business is also the slow approvals, which means that we only have “outdated” products on the market, while the variety of products abroad is greater.
The government’s measure also does not understand from a health perspective. Because the idea behind the lower load was also the risk -accelerated effect of the products. “Now these products will no longer be so interesting for many customers. Because if they have no advantage in terms of price, the stimulans also falls to buy and change them,” says Streiesig.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
