forzaq8 t1_iugjraf wrote on October 31, 2022 at 3:45 AM

But did the companies pay the taxes or it was part of the price of cigarettes aka the Russian paid it to themselves

hieronymusanonymous OP t1_iugmc1k wrote on October 31, 2022 at 4:11 AM

Cigarette companies pay import duties for their cigarettes sent into Russia. I haven't been able to locate the figures for that, so I don't know how much of the £7bn in taxes comes from that. My guess is all of it, but the article could have been more precise about this.

forzaq8 t1_iugmnrz wrote on October 31, 2022 at 4:15 AM

In my country we have a high import duty on cigarettes and each time they raised it the price of cigarettes raised the same % , Philip Morris isn't paying that, the customer is

hieronymusanonymous OP t1_iugnnrm wrote on October 31, 2022 at 4:26 AM

Ultimately, taxation of any kind winds up being paid by the consumer. But the point is that with import duties, the manufacturer is paying the taxes directly to the government and it isn't internal taxation. Philip Morris is indeed paying that even though the ultimate consumer pays more for its cigarettes as a result.

Figuurzager t1_iuh5sx9 wrote on October 31, 2022 at 8:44 AM

Ehm, no, depends on the price elasticity of demand. If you hit the cliff where demand drops of sharply and you still make a nice profit it won't be smart raising the price as you'll will be making a lot less money.

Hypotheticall t1_iuhsdwy wrote on October 31, 2022 at 1:11 PM

They're talking about import duties - due on arrival into country of destination - payable by originator.