GERMAN TOBACCO INDUSTRY STRUGGLES TO OVERCOME HIGHER PRICES AND PUBLIC SMOKING RESTRICTIONS

BY ALAN OSBORNGERMANY'S cigarette market in recent years has provided a classic illustration of the truth that faced by higher prices, consumers will try most things - except give up smoking. In the four years to late 2006 there were five German government-imposed excise tax and VAT increases affecting tobacco which had the combined effect of raising the price of most cigarettes by 30% o 40%. But as an independent report released last year by British American Tobacco made clear, inflated basic cigarette prices force consumers to seek alternatives, in Germany's ...


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