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The concept of the fiscal mechanism implies the application of an increased rate of the minimum excise tax liability (application of a multiplier of 1.4) in case of declaring the price of cigarettes below a certain level.This level will be determined by a simple formula the rate of the minimum excise tax liability multiplied by 1.65

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Excise taxes are generally less transparent as they are levied early in the value chain and built into the price when the good moves through the chain