British American Tobacco‘s Hungarian unit on Tuesday said a bill that would guarantee a minimum margin on retail tobacco sales could force it to postpone investments of about HUF 15 billion planned for 2013 and 2014. The guaranteed margin is expected to cause Hungary’s tobacco market to contract, threatening the 400 workplaces at BAT’s plant in Pécs (SW Hungary) as well as the almost 8,000 people who now rely on retail tobacco sales to make a living, BAT said. Hungary will introduce a state monopoly on retail tobacco sales from July 1. Concession winners have already been announced and a second tender called because of a lack of interest in licences for tobacco sales in Hungary’s smallest communities. Parliament is set to vote on Tuesday on a guaranteed 10% margin for tobacco retailers. Industry insiders put the margin on retail tobacco sales at present at 3-4%.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
