“Worry about industry-wide effects.” This is how JTI Italia, second player in the tobacco market in Italy, defines the Budget Bill circulated in the last few hours, which provides for a monstrous increase in excise taxes on manufactured tobacco, especially on traditional cigarettes.
The sector is aware of the serious situation the country is going through and is, as always, willing to do its part. However, if the maneuver is confirmed, not only will it cause a significant increase in prices to the detriment of the final consumer – the estimate is over 40 cents per package, a rise that has never occurred in tobacco manufactured in Italy – but it will also produce market distortion.
A reform that is even more worrying because it would aggravate a historic moment in which inflation does not stop growing and thousands of Italian families see their purchasing power drastically reduced.
It should also be noted that the Italian State’s coffers would actually suffer the main negative effects of this reform, which, following the consequent contraction of the market, would be faced with a decrease in tax revenue.
Faced with such a scenario, the company expresses all its confidence in the Government for the opening of a discussion table that can find a solution capable of guaranteeing all market agents in a fair and sustainable way.
Source: IL Tempo
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
