Smokers in Greece are facing a dramatic increase in cigarette prices, with the package reaching from today's 4.80 euros to 6.50 euros, due to a new European tax framework. Greece is low in the European tax classification of tobacco products, with Greeks smoking on average over 18 cigarettes a day. The change will burden the average smoker with over 560 euros per year, raising the annual cost from 1,500 to 2,150 euros. At the same time, there is concern about strengthening the illegal trade in cigarettes.
Analyticalally:
If the new European framework goes ahead, smokers in Greece will see the cost rise sharply, with a burden of over 560 euros a year.
The cigarettes They see uphill again and, this time, the conversation is not about a small price correction, but a scenario that would significantly change the daily life (and pocket) of millions smokers in Greece. The debate that has been opened at European level brings to the fore a possibility that up to some time ago seemed distant: the package to reach from around 4,80 euros to 6,50 euros.
For Greece, the issue is not theoretical. The country appears to be low in the relevant European classification of the taxation of tobacco products, which means that if a stricter European framework goes ahead, the adjustments that will be required can be much more pronounced than other states. And that, in practice, means that the smoker will see it first of all at the stand.
The pressure that the new frame can bring
The picture is that Greece is only slightly above the minimum limits of the European Union in terms of excise duty on cigarettes. This puts it among the countries which, if European rules change, will need major tax adjustments to align with the new data. In this scenario, the increase in the final price of the package would not only be possible, but almost expected.
The issue becomes even heavier because in Greece smoking remains deeply rooted. Greek smokers appear to smoke on average over 18 cigarettes a day, which is among the highest in the European Union. At the same time, the rate of use of tobacco products in the population is significantly higher than the European average. In simple terms, we are not talking about a small-scale market, but about a huge daily habit that touches too many households.
This means that even a seemingly «accounting» a change in taxation translates into real economic pressure. With today's data, an average smoker in Greece already gives over 1,500 euros a year for cigarettes. If the price of the package goes up to 6,50 euros, the annual cost will be close to or even exceed 2,150 euros. That is, the burden will be greater than EUR 560 per year. For many, this is an account that no longer goes unnoticed.
Along with tax pressure, there is a second concern that always returns to these discussions: illegal trade. In the Greek market, illegal cigarettes are estimated to already occupy an important part of the total consumption. And here's the hard part. The higher the legal price, the greater the temptation for a piece of consumers to turn to cheaper, illegal choices. It is an old story, but it remains topical, because the relationship between price and demand shift is almost immediate.
At the same time, the big picture does not change: smoking is still one of the most important threats to public health worldwide., while consumption of tobacco products remains at enormous levels. Thus, Europe seems to be moving again towards the logic of pressure through price. Whether this will lead to less smoking or simply greater economic asphyxiation for smokers and more illegal economy is the real question.
