JEDDAH: Due to the pressure of customs and restrictions on the import, prices of tobacco products in Saudi Arabia may increase between 20 to 30 percent in coming three months, said experts according to an online newspaper.

The Saudi Customs Department has ruled out any immediate changes or increase in custom duties on tobacco products. But the adoption of the protocol to eradicate the illicit trade in tobacco products by the Council of Ministers is seen as one of the main reasons for any possible increase in prices.

This protocol would mean decreased import or less local illegal manufacturing of tobacco products. Government agencies are also making efforts to prepare new quality standards for tobacco products being sold in the legal market.

Abdul Mohsin Al Shaneifi, director of restrictions and tariffs in the customs department, said that there have been no changes in custom duties since an increase in 2000. This was followed by pressure on the companies from the Ministry of Health which made it mandatory for importing companies to write precautionary warnings on all the products sold in the retail market.

Dr. Ali Batrifi, professor of economics and an expert on tobacco eradication in Saudi Arabia, said that the Gulf countries were preparing to impose high customs duties on tobacco products while the World Trade Organization was making it mandatory for countries to end customs duties on all these products. But this cannot be binding for countries who find such products harmful.

He said that it is expected that the prices of tobacco products will increase between 20-30 percent in three months due to measures taken by the Ministry of Commerce and Industry to implement new quality specifications and standards to get rid of bad quality tobacco in the market.

One of the latest reports says that Saudi Arabia’s import of cigarettes has increased to SR4 billion which is 9 percent over the volume of last year.

Cigarettes are in 19th position on the list of the 50 most imported items in the Kingdom.