State’s tobacco revenues up in smoke

The doubling of tobacco taxes at the end of 2012 coupled with a hike of around 20 per cent in cigarette levies has not added a single cent to state coffers over the last three years, official figures from the Customs and Excise Department confirm.In fact, not only were there zero gains for the state from the higher prices imposed at the end of 2012, but it lost another €13 million on top of that in 2013, raking in €200 million compared to €213 million in 2012, and has continued to steadily lose revenue in the years since.Estimated losses to the state over the past three years, according to information from the industry, have been in the region of €90 million, taking into account what should have accrued from the 2012 tax hike.

Official figures show that last year, revenues dropped to €189 million from €196 million in 2014.

http://cyprus-mail.com/2016/06/12/states-tobacco-revenues-smoke/