TOBACCO: Tax rises hit cigarette and shag prices in Netherlands

NETHERLANDS. Cigarette and rolling tobacco prices have increased in the Netherlands as of 1 February.

The Dutch Finance Ministry said that a packet of 25 cigarettes or shag of 50 grams now cost €0.80 (US$1.0) more than previously. A total €0.55 (US$0.69) of the increase is attributed to the increase of excise duty on cigarettes.

The remaining part of the increase is attributed to tobacco manufacturers. A packet of cigarettes or 50 grams of rolling tobacco will cost on average €4.60 (US$5.78) as of February 2004.

The move should boost duty free sales for Dutch non-EU travellers but may hit the high volume duty paid business at the country’s airport and ferry trade. “Domestic” business from UK travellers in the Netherlands may also be affected.

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