If government raises excise taxes on tobacco for 2008 as planned, prices for Bulgarian cigarettes could go up by as much as 1.05 to 1.20 leva per package, Yulii Manoilov, representative of the National Union of Tobacco Producers said on October 7.

A package of cigarettes produced by Bulgartabak would cost between 2.75 and 3.90 leva. This price level would increase tobacco smuggling from the current 25 - 30 per cent to 45 - 50 per cent and the losses for the treasury would be 750 to 800 million leva, mediapool.bg quoted Manoilov as saying.

Manoilov said a the sale of unregistered brands of cigarettes was a serious problem in the branche.

The Union of tobacco workers, part of the KNSB labour union, said it feared government had no plan for the future of Bulgartabak.

The two unions announced that in two weeks time the workers from the four Bulgartabak Holding factories would start protests against the raise in excise taxes, as they fear import cigarettes would be sold more than locally produced cigarettes.

Since the opening up of the market in 2007, Bulgartabak's marketshare has dropped to 85 per cent and workers fear it would continue to drop to 70 per cent, mediapool.bg said.