The government approved a new plan for restructuring of the tobacco sector that will allow the privatisation agency to sell out Bulgartabac Holding as a single entity. The cabinet will propose to the parliament to suspend the current strategy for Bulgartabac and will thus scrap the ongoing procedures for selling out the two cigarette production units as separate entities. In July, Bulgartabac already sold the idle cigarette factories in Plovdiv and Stara Zagora for BGN 30.9mn (EUR 15.8mn) and BGN 17.8mn respectively. Bulgartabac projects a market share of 50-55% in the country next year as compared to 60% at present and 90% in 2006. The planned increase in the excise tax as of Jan 1 is expected to raise the local prices of cigarettes offered by Bulgartabac by about 26%. The government controls 79.83% of Bulgartabac.