As of today the excise tax on cigarettes rises. This increase will be on average CZK 6 a package. A second rise has been postponed from January 2006 to April 2006. The news was expected as the Czech Republic has to reach the minimum EU level of taxation on tobacco products by 2007. The rise in the excise tax is expected to cause a rise in the market share of low cost cigarettes. To defend its market share Philip Morris has also started to introduce more cheap brands. Due to wholesale stockpiling, cigarettes with a higher price should only hit the market in October.