The Principality of Andorra has set new tobacco prices, supposed to limit the trafficking of cigarettes to neighboring countries, AFP told the government Thursday: the price of a package can not be more than 30% lower than Spanish package the cheapest.
This measure, which raises the prices of tobacco sold in Andorra, mainly affects brands of cheaper cigarettes whose cartridge can cost up to five to six euros more, according to the price list published by the Official Bulletin.
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A cartridge from Austin, a cheap cigarette, will cost for example 26 euros instead of 20 euros. For the more expensive brands, like Marlboro and Ducados, at around three euros a pack each, the increase will be proportionately less.
The objective: to reduce the price gap between Andorra and the countries of the European Union
The text fixing a minimum tariff, adopted in February by the Andorran Parliament, reported a differential that could not be more than 35% lower than the French or Spanish price. The Andorran government had indicated that it wanted to abide by its commitment to limit the price differential between tobacco and those in the European Union.
But after negotiations, representatives of the government, the local tobacco industry and businesses finally retained a gap of 30% compared to the lowest prices in Spain, which are themselves lower than in France.
A measure put in place from 23 October
The new rates are to come into effect on October 23rd. As of this date, we should no longer find in Andorra cigarette cartridges for less than 24.95 euros.
Asked by AFP, many Andorran traders expressed their satisfaction, saying that tourists will continue to supply Andorra since a good price differential is maintained with neighboring countries. The tobacco trade brings in about 130 million euros a year to the small state of the Pyrenees of 75,000 inhabitants.