SERIOUS CONCERN FOR ANNIHILATION INDUSTRY OF TOBACCONISTS OF GREECE

Doc. Ref .: 574 BOLOS 04/01/2013

TO MEDIA

PRESS RELEASE
Serious concern
DIVISION OF TOBACCONISTS OF GREECE

Dear friends,

The Federation tobacconists Greece wishes you many happy returns for the new year of 2013 and informs you that for a long period of the industry has huge problems of sustainability. We only mention that the profit margin rates on cigarettes and mobile phone cards is 3%, which translates to from 0.08 to 0.10 minutes, and this is the province where the delegation regime operates, and in major cities of Athens – Patras – Thessaloniki status is consistently our colleagues to work with rates of profit margins on cigarettes from 0.04 to 0.06 minutes at no other products such as type, haberdashery, soft drinks, candy and other profit rate is from 0.10 to 0 , 18 minutes understands Make As the great difficulties that exist in both the liquidity of these companies and to be able to keep these jobs of our colleagues self. Everyday we witness close kiosks and colleagues are indebted to the insurer in the tax office in the municipality suppliers banks etc. under this light vortex of great economic and unemployment which needs a rationalization after the existence of bill. In this way, given the possibility of reducing the gap of economic and expensive cigarettes. So the Greek companies are trying to be able to compete with large multinational companies. They lumped irrelevant things in a bill to fulfill their obligations towards the IMF and the Troika, and thus violating the European Community Directives. Unfortunately the whole situation causes sorrow, anger and anguish and of course trying to destroy a large industry. In their effort to liberate the 136 occupations in all sectors not looked neither parameters nor that the existing legal framework will be replaced. They did not consider the parameters Geneva Conventions saying that there can not be a retail network incoherent which is not under the control of the WHO (World Health Organization) nor the following parameters give the possibility of increased smuggling . Geneva Convention 4/4/2012 the draft protocol to eliminate illicit trade in tobacco products of the World Health Organization and referring in particular to Articles 4 and 6 (see. Pages 8, 9, 10 and 11 of the text) which inter alia reads :

• That the Parties will effectively implement measures to control or regulate the supply chain of tobacco products, to prevent, contain, investigation and prosecution of illicit trade and will work together for this purpose.
o (Article 4 – Paragraph a ‘).
• That will take measures to increase the efficiency of relevant authorities and agencies, including customs and police authorities responsible for the prevention, reduction, investigation, and prosecution of illegal trade.
o (Article 4 – Paragraph b)
• That to achieve the goals of the Framework Convention of the World Health Organization (WHO Framework Convention on Tobacco Control), each Party shall seek the authorization of any person or entity that is engaged in:

the retail sale of tobacco products.
(Article 6.2.- Paragraph first)
Indeed, to ensure the effectiveness of such a licensing system is anticipating even for the establishment or designation of competent authorities for the issuance, renewal, suspension, revocation or cancellation of licenses, in accordance with the Protocol and national legislation and also provided guidance on what data They must be taken into account for the selected licensing system.
(Article 6.3 – paragraph A ‘- j’).

So, as you understand, when the global trend is to regulate the supply chain of tobacco products, any uncontrolled “opening” of the profession of tobacconists, will not only be incompatible with international developments but it is a completely irresponsible move that would undoubtedly cause huge damage to the public interest, increase in illegal trade, which in our country is getting rampant and based on surveys that have been published has acquired scary share of 17-19% with consistent a dramatic loss of revenue to the State, and removing substantially the Law for preventing smoking by minors.
The Opinion of the Competition Commission was not and is not in any way for this polynomoschediou, and of course the release.

The unconditional release of tobacconists profession will increase sharply apart from the illicit trade and crime associated with it and the release will hit very significant public health. Today the increase of smuggling is 22%. Nor they looked 3730/2008 Law on Prohibition of Tobacco products by minors. They did everything in great haste in order to clear up a branch while ago had reached 100 years. The goal was how they could sell stores and supermarkets tobacco products, although the products have health interest in some products militate against the existence and operation of the department store. The government did away with unconstitutional manner the stands and the benefit of Article 21 of the constitution, which enabled them to vulnerable social groups such as the disabled and war victims, national resistance, civilian, civilians, many children, the handicapped etc. delivering essentially the municipalities. In this bill joined and the overall tax increase consistently shrinking even further the supply of colleagues tobacconists Greece. Today our colleagues selling tobacco industry products such as hand-rolled cigarettes that their value is at 5 € and the profit margins are at 0.10 minutes, not cigarettes in their growth ranged from 0,30 € to 0,50 € not there was no economic change but instead has been shrinking profit margins, although there was increased taxation and increased end vocation and naturally did not give the possibility of a final discharge of tax liability as to meet one of our colleague all func ‘running costs required to sell at least 1,000 packages of cigarettes. Also to cover their other family obligations requires a commercial profit margin to ensure the viability of the company and of course not to be 2% to 3% today. To date there have been several interventions and of course needs to be done and others to completely free the industry from charges imposed to date. we understand that our colleagues with great difficulty trying to meet the minimum operational requirements. If you continue this tax situation at the expense of our colleagues is mathematically certain that we and others unemployed. Today in the tobacconist industry are about 100,000 families. So we need these small businesses to enable the stimulation rather than extermination. From the industry – tobacconists Treasury expects a respectable amount of duty that will be achieved with this fragmented network and the gateways to insufficient storage.

So therefore there needs to be support for the state that these businesses continue to have viable, but if we consider that they do not need another small shops and tobacconists of course want to get rid of them. The altar of sacrifices in recent years have closed over 7,500 companies, it is clear that in every corner of the square there is a padlock. The fact that in this industry there are people such as the disabled and war victims are our colleagues a few years ago were in the production process, and therefore the enormous industrialization of the few economies were forced to become and trying in one way or with another way to support their family, and the state should have given more respect to unpaid tax collectors this industry. Ignoring the rule affects a sector with a very long history. This branch operates 365 days for 18-24 hours a day and of course performs function as a corner of small shops offering despite many services such as ambassadors of the cities where every tourist draws visitor information wants when they want it. The lights do not stand prevent  violence, and a symbol of national and Greek economy. From 1897 until today the contribution and the contribution of all these people was essential both to our national economy and prevent smuggling. Prior to the extinction of this industry portals should the government leaders to reconsider all these parameters and of course to enable a sustainable solution such as:

The definitive tax exemption for tobacco products and mobile phone cards from the time that the profit margins are so low, you must stop taxing the current coding unit Factor Tables Net profit commercial enterprises.
Establishment of a minimum margin network profit rate for all tobacco products which may not be less than 50% of after tax money, and of course to have a safeguard application to not become like N. 3943 was never implemented.
Redefining and reducing the overall excise duty today is shaped by the analog, fixed and minimum tax and VAT
SINCERELY
THE PRESIDENT OF O.E.V.E.M.
THE SYN.PE. & THE O.P.K.E.
Kogias Kostas