Last year excise tax hike has not been fully transferred into cigarette prices. According to local branch of British American Tobacco, prices of brands constituting 23% of total cigarette sales in Czech Republic have not been changed at all, 18 % have been changed less than projected and 59% have been fully priced in excise tax hike. Latter have been mainly less expensive brands, where producers’ margins are lower. Such a development has been expected due to competition between tobacco producers. However further excise tax hikes are projected later this and next years, which might be fully projected into retail prices. We see this news as neutral for today’s trading.