The Case of Romanian Cigarette Market

CHAPTER VIII. STUDY-CASES 1. THE CASE OF ROMANIAN CIGARETTE MARKET 1. Introduction Among the obligations as coreed by Romania by(1) the EU Adhesion Treaty (2)there is the fact that, until 2010, the minimum impose level for cigarettes must be aligned with the minimum measure level of the member states 57% of the most popular cigarettes (MPPC) scathe, tho not less than 64 Euros for kelvin cigarettes. Through the modifications do to the Fiscal ordinance in April 2006 by the OU 33/2006 the governing approved the taxation level, which will increase gradually until it reaches the necessary level. (In 2006, this happened two times, at an approximately two months interval). According to the decision, the tax of the cigarettes will be calculated by means of a fixed quota and another quota computed from a fortune of the cigarettes value. The first increase stipulated that the tobacco tax should be of 9.10 Euros for honey oil pieces plus 30% of the maximum price of retail sell (a medium tax of 32.13 Euros for 1000 cigarettes), which produced an increase of approx. 0.8 RON in the price of a cigarette package. Starting with the 1st of July, the tobacco tax jumped to 16.28 Euros/1000 pieces plus 29%.

The 177 article of the Fiscal Code was as well modified: for cigarettes the taxes due to equal the sum of the specific and ad valorem taxes, but not less than 19.92 Euros/1000 cigarettes. When this sum is less than the minimum taxes, they are paid. The tobacco assiduity companies solicited a five year transition (however obtaining only three), in order for the tax level to reach 64 Euros in 2012. They claim that this period is necessary because the medium income in Romania is half(prenominal) the one of the other candidate states, and consumers cant brook the increase in price. This statement is justified, even if its nearly tobacco, which is harmful for health. The Romanian tobacco market amounts almost 1 one million million Euros, with a total volume of 35 billion cigarettes, and is dominated by three large... If you want to get a full essay, order it on our website: Ordercustompaper.com

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