Smoking has become much more expensive within the last 5 years

14/08/2012 15:00

The price of cigarettes and hand-rolled cigarette tobacco rose by 38 percent over the last 5 years. This is substantially more than the 10 percent inflation rate in this period. The price rise is mainly caused by the frequent rises in excise.

Tobacco prices, July 2007 - July 2012

Tobacco prices, July 2007 - July 2012

Eight excise adjustments

There were eight excise adjustments related to smoking in the last five years. Such adjustments influence prices after some delay, as shop keepers sell their old stock before they start selling the more expensive tobacco. For instance, after the July 2008 excise adjustment it took five months before smokers paid the new price for a package of cigarettes or hand-rolled cigarette tobacco.

Cigarettes or hand-rolled cigarette tobacco saw a 38 percent price hike in the last five years. Without the excise measures, cigarettes would have gone up 12 percent in price and hand-rolled cigarette tobacco 13 percent. Cigars became 13 percent more expensive as no excise adjustments applied to them.

Price rises for tobacco, July 2007 - July 2012

Price rises for tobacco, July 2007 - July 2012

Tobacco prices rising 2.5 times more than in neighbouring countries

Tobacco prices in the Netherlands rose over 2.5 more than in the neighbouring counties. In Belgium and Germany tobacco prices are up by 14 percent on June 2007, the smallest price rise in the Eurozone. Without the rises in excise Dutch prices would have risen by a similar percentage. Prices in Slovenia, Slovakia, Spain and Estonia rose even faster. In Estonia prices nearly doubled during this period.

Price rises for tobacco in the Eurozone, June 2007 - June 2012

Price rises for tobacco in the Eurozone, June 2007 - June 2012

Carel Oosterlaken