Due to inflation and devaluation, the fifth price increase so far this year was applied.
The most recent setting an increase of 15% in the costs of the cigarettesentered into force at the beginning of this week, generating a direct impact on Argentine smokers, who were already dealing with a growing inflationary pressure.
Massalin Individuals implemented an increase that represents the fifth rise so far this year, being the most marked since the 7% registered in March. As a result of this change, the price of a pack of 20 cigarettes of the most popular brands exceeded the mark of the $900.
This increase in prices reflects the complex economic situation in the country, characterized by persistent inflation and a devaluation that increases production costs.
For the smokers, this increase in prices represents a significant financial challenge. In the midst of a period of economic contraction, many people are forced to cut back on spending, and cigarette smoking is often one of the first areas where adjustments are made.
Cigarettes: the impact of the increase
Among the most prominent brands that the company sells are Marlboros, which will now have a price of $830 in its standard version and $940 in its box version; Philip Morris, which will be marketed at $710 in its standard version and $830 in its box version; and the Chesterfield brand, which will cost $590 in its standard version and $720 in its box version. In addition, the Marlboro Crafted brand will have a value of $650 in its SP version.
It is important to note that, currently, approximately 40% of cigarette packages sold in Argentina evade taxes in the sectordespite the unanimous decision of the Supreme Court of Justice in May 2021. There is a group of companies that continue to evade the Minimum Tax, which harms both state revenue such as the operation of taxes established by law.
It is estimated that during the period between 2016 and 2022, the National State stopped receiving income for a value of 1700 million dollars due to these evasions, and the loss for 2023 is expected to reach 900 million dollars.
Source: Ambito
