New cigarette stamps and reduction of the cigarette tax on 1.10.2003

On 1 October 2003 the Danish cigarette tax is reduced in order to make cross-frontier-shopping less advantageous. As a consequense of the tax reduction, the producers and importers of cigarettes have to equip the cigarette packs with new stamps (tax paid stamps) stating the retail price after the tax reduction (series 46). Retailers having a large stock of cigarettes equipped with old stamps on 1 October 2003, are allowed to have the tax reduction refunded. From the same time, they are allowed to sell cigarette packs with old stamps at the new price (old price according to the old stamps minus the tax reduction). As a service towards producers and importers, until 1 October 2003 they have the possibility to order special stamps stating the old price as well as the new price (series 45).



The interim stamps of series 45 with two prices, valid before and after 1 October 2003 respectively, were put into circulation in June, 2003, and were used for all cigarette brands. The stamps have the identification code of number 9 referring to the old level of the cigarette tax introduced on 1.4.1986. As illustrated above, a pack of 10 cigarettes at an old price of 17.00 crowns was sold at a new price of 15.00 crowns from 1 October 2003, meaning a tax reduction of 2.00 crowns. The tax reduction for a pack of 20 cigarettes was 4.00 crowns. All together 24 different stamps of series 45 were issued.



The new series 46 of cigarette stamps have the identification code of number 1, as illustrated above. Producers and importers were able to order these new stamps from August, 2003. However, not before 1 October 2003 cigarette packs affixed with these stamps were allowed to be sold.