Excise on cigarettes will be levelled with the average in the European Union in three steps. The first will take place next year and the other two will be carried out through 2010, said Hristo Lachev, CEO of tobacco company Bulgartabac Holding, referring to plans of the finance ministry.

In an interview with Pari newspaper, Lachev said the excise hike will have a detrimental impact on the company under his management as it will lead to a consequential hike in locally-manufactured cigarette prices. He also said the success of Bulgartabac privatisation will be largely depend on the degree of the excise increase.

According to Lachev, the term for the sale of the holding has long expired and only political will could finally transfer Bulgartabac into private hands.