Cigarette Smokers in shock over new prices

Dar es Salaam. As the new financial year kicked in on July 1, smokers found themselves in a big surprise as both wholesale and retail prices climbed by between 25 per cent and 40 per cent.

This came as a surprise due to the fact that the government did not announce any increase in excise duty on tobacco and tobacco products during this financial year.

Smokers have also been wondering why the prices are rising in a time when the government did now traditionally increase the taxes on sin industries including tobacco products and alcohol.

A market survey has shown that the retail prices for cigarette have increased by 25 per cent to Sh250 per piece for traditional brands by Tanzania Cigarette Company Limited (TCC), including Portsman and Sweet Menthol from Sh200.

For the Embassy brand, which is manufactured by the same maker, its retail price has also increased to Sh300 per piece from Sh250.

For the other manufacturer, Mastermind Tobacco, its prices have also increased to Sh200 per cigarette from the previously Sh150.

In high consumption areas, including night clubs and hotels, the prices have also increased to Sh300 per traditional brands and Sh400 per other brands.

Retailers who spoke to this paper have revealed that the increased retail price was a result of increased wholesale price.

Mr Joseph Simba, a retail shop owner at Tabata, said they decided to increase prices of cigarette because the wholesalers have also increased their prices, citing the increase of taxes, although the minister of Finance and Planning, Dr Philip Mpango, did not announced any change in tax when tabling the 2019/2020 budget on June 13 this year.

Mr Simba said the they were buying a pack of cigarette at the wholesale price of Sh2,400 but the price has jumped to between Sh3,400 and Sh3,600.

This whole thing leaves smokers feeling the pinch due to the change.