Big tobacco’s friend in Ukraine 

Oblast's Pryluky. The visit follows a controversial veto by Yushchenko of legislation that would have hiked the excise tax on tobacco products. Ukraine's cigarettes are among the lowest taxed and cheapest in the world, contributing to a high rate of smoking and more than 100,000 smoking-related deaths each year. The Ukrainian leader praised BAT for their investment, tax contributions and transparent operations in Ukraine. Desperate to raise additional revenues for cash-strapped state coffers, the government led by Yushchenko's rival, Prime Minister Yulia Tymoshenko, has championed recent tax hikes on tobacco products. Yushchenko has defended his veto, insisting that further tax hikes could hurt tax receipts and stimulate a black-market trade. Public health activists disagree and are suspicious of Yushchenko's chumminess with the influential tobacco industry.

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