PRAGUE (Thomson Financial) - Czech tobacco group Philip Morris CR sees no reason for further tax hikes on cigarettes in the next several years after the last rise at the start of the year, weekly Euro reported, citing the group's new CEO.
'After a rise in the consumer tax in January 2008, the Czech Republic fulfilled and passed the minimum tax, and therefore we do not see a reason for raising the rate for several years,' Euro quoted Alvise Giustiniani as saying in an interview.
The tobacco group's Czech market share has eroded in recent years amid fiercer competition and tax hikes on cigarettes, and analysts expect the company to face challenges in 2008 due to strong stockpiling from competitors. jason.hovet@thomsonreuters.com +420 222 191 109 jrh/ajb COPYRIGHT Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.