Daily Pravo brought information that newly appointed Finance minister will not support increases of cigarette excise tax over the minimum EU required level.
Our view:
We see this information as neutral, mainly due to the fact that political issues are still not solved out and it is still not clear if this government will win a confidence vote. We remind that due to strengthening of CZK/EUR exchange rate there should be no need for excise tax as of 2008 when taxation should reach EUR 64 per 1,000 cigarettes as agreed with EU.