adminA 20 cigarette pack is selling for between $1,30 and $1,50 from $1 while extra mild brands are going for $1,50 up from $1,20 per pack.
British American Tobacco head of legal, corporate and regulatory affairs, Mrs Shungu Chirunda, said the increase in the price of cigarettes was triggered by the upward increase in cigarettes excise tax.
“BAT announced the new prices of its cigarette brands, which came into effect on 12 December 2012 aligned to the increase in cigarette tax in the national budget speech read by the honourable Minister of Finance on 15 November 2012,” said Mrs Chirunda.
She said there were direct and indirect factors that determined the price of cigarettes in the market with direct factors being taxation in the form of excise tax and value added tax, cost production, availability of materials and the cost of manufacturing material.
“Our cigarette brands are unlikely to increase in the near future but like most moving consumer goods, the price of cigarettes is a result of a number of factors and the trend is that raw materials and taxation are increasing on a yearly basis which is making it more expensive to produce and sell products,” she said.
Presenting the 2013 National Budget, Finance Minister Tendai Biti increased excise duty on cigarettes from $10 per 1 000 sticks to $15 per 1 000 sticks with effect from 1 December.
He said the increase was expected to raise money for the fiscus while discouraging smoking on health grounds.
Smokers in the city said they would not stop smoking despite the price increases.
Mr Mgcini Moyo said the increase would not have the desired effect to discourage smoking because it was marginal.
“The move to increase the price of cigarettes is useless since the increase is by a mere 30 cents so chain smokers will continue to smoke to satisfy their craving,” he said.
Online Reporter