One of the largest tobacco companies in the world, producing many of the world's best-selling cigarette brands, Philip Morris will not increase the prices for Marlboro cigarettes, but smokers must pay 2.50 Kč more for non premium cigarettes packs.

High cigarette tax went into effect on January 1, which led to a 2.50 Kč (13 U.S. cents) price increase per pack of cigarettes, but many smokers are unlikely to see yet an increase in the price of their preferred brand due to the decision of one Czech tobacco industry leader.

As it is known, Philip Morris is also the largest tobacco distributor on the Czech market, has decided not to pass on the tax increase to smokers of its premium smoking brand, Marlboro. So, as a result other premium cigarette manufacturers can’t raise their prices.

Andrea Gontkovičová, director of corporate affairs for Philip Morris Czech Republic explained that Philip Morris will increase the price of its non premium cigarettes, but there will be a delay before existing stocks with lower excise tax types are sold and the more costly cigarettes attack shops.

Even the EU has called for further excise tax increases of 90 euros per 1,000 cigarettes before 2014, which will conduct to an almost increase of 12 Kč per pack in the Czech Republic.

Kamil Provazník, executive at Imperial Tobacco Czech Republic: "The trend of excise tax increases will continue, and we will set our prices based on new tax rates. This step is not good or bad, but is very important and necessary. We simply chase the rules."

Scientists reported that the 2010 budget passed by Parliament contained a 2.50 Kč excise tax increase on each pack of cigarettes. Cigarette industries usually are only for tax increase, because in such situations the state revenues come from smokers' pockets.

For Philip Morris the new decision is an inconsistency, but is a welcome one for smokers who like to smoke Marlboro cigarettes.

Gontkovičová added: "Over the past five years, cigarettes have been a subject of continuous dramatic tax increases, which have put the legal market under serious pressure. It is in this context that we make the final decisions on the pricing, including our flagship Marlboro."

The Philip Morris' new decision is evidently good news for those who smoke Marlboros but is not good for those who favor other brands as well.

However, Imperial Tobacco will not increase prices on most brands of cigarettes this year as a result of Philip Morris' decision.The 2010 tax hikes come just two years after the largest tobacco excise tax increase in history raised prices an average of 6 Kč per pack.