1. EXPERIENCES OF INCREASES TO THE TAXES ON TOBACCO IN SURINAME Panama City, July 11 Marita Wijnerman, LLM Head Fiscal Affair- Indirect Taxes Ministry of Finance Directorate of Taxes

2. WHO Framework Convention on Tobacco Control Suriname Signed the framework on 25 June 2004; Ratification date 16 December 2008 Measures to be taken; Suriname doesn’t have the tobacco law in place yet. some action was taken to fulfill the convention

3. Taxation on tobacco in Suriname Import dutiesConsumption taxOther duties Cigars50%10%2% Cigarettes50%10%2% Tobacco50%10%2% Other Tobacco50%10%2% Source: Custom legislation Consumption law

4. Taxation on tobacco Excise 2006After Sept 2011 Cigars44 US dollar per 500 pieces66 US dollar per 500 pieces Cigarettes44 US dollar per 1000 pieces66 US dollar per 1000 pieces Tobacco44 US dollar per kg66 US dollar per kg Other tobacco44 US dollar per kg66 US dollar per kg Source: Excise law on Tobacco

5. Illicit trade Suriname biggest concern was : 1.that a certain part of the tobacco products disappeared in the black market. 2.Access cheap tobacco for the young population; 3. Under-valuation, appears to be common practice; 4.the smuggling of cigarettes.

6. Article 6 FCTC At that time the Government of Suriname needed to meet the requirements of article 6 of FCTC. Since taxes are not only a budget instrument, but also a tool to discourage a behavior.

7. What measures have been taken The first action in 2006 1.Increase the excise taxes with 100% in 2006; 2. Change the tax base from ad valorem to specific tax; 3. Implement Excise stamps (2008) Important : In the Tax law the government stated that the purpose of the tax increase was to fulfill art. 6 of the FCTC.

8. Other measures 4. Set up an Special Excise Stamp Control Unit (custom officers and officers of Min. of Trade, the Department of Economic Crime); This Unit is working closely with the Fraud department of the Police.

9. Concern Tobacco Industry Suriname does not manufacture tobacco products. But there are some big importers. When the government increase the tax in 2006 they have the following concern. 1.Job losses; 2.Increases of illicit trade;

10. Excise stamps

11. Cigarettes from illicit trade

13. Tobacco consumption 2002 - 2009

14. Increasing taxes in 2011 second action New government in 2010 announced fiscal measures; Increase Excise taxes with 50 % in 2011.

15. Price before excis e Price without excise ↑ 50% excise New price MORELLO 20'S FULL FLAVOR62.453.554.427.97 MORELLO 10'S FULL FLAVOR3.251.222.032.214.24 DUNHILL FULL FLAVOR7.252.454.804.429.22 DUNHILL 10'S FULL FLAVOR3.751.222.532.214.74 DUNHILL MENTHOL7.252.454.804.429.22 DUNHILL LIGHTS7.252.454.804.429.22 DUNHILL FINE CUT BLACK82.455.554.429.97 PALL MALL FULL FLAVOR52.452.554.426.97 PALL MALL LIGHTS52.452.554.426.97 PALL MALL MENTHOL52.452.554.426.97 PALL MALL 10'S FULL FLAVOR2.751.221.532.213.74 PALL MALL 10'S LIGHTS2.751.221.532.213.74 PALL MALL 10'S MENTHOL2.751.221.532.213.74 VOGUE BLEUE82.455.554.429.97 VOGUE MENTHE82.455.554.429.97

16. Prices of cigarette now Brands Price of a package (20 pieces) (US$) Pall Mall2,30 2,62 Dunhil3,02 Marlboro3,69 Capital 2,11 Tradition2

17. ExpectedRevenue 2011

18. Revenue Source: Custom Department of Suriname and the Collector

19. Revenue Source: Custom department of Suriname and the Collector

20. marita.wijnerman@finance.gov.sr