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· Business (Tobacco)
· Tax
non-USA, by Country
· Peru
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Jump to full article: BBC Online, 2003-07-28
Author: Elliott Gotkine / BBC Lima correspondent
Intro: According to Peru's President, Alejandro Toledo, his country's economy is the showgirl of Latin America. . . .
The tax rises - which include a selective consumption tax on cigarettes -- have especially angered British American Tobacco (BAT).
It recently bought Peru's only tobacco company, Tabacalera Nacional, for an undisclosed sum. But because of the tax rises, BAT has decided to reassess its plans for Peru.
"We made a significant investment three months ago," says Luiz Hereen, the head of BAT's operations in Peru and Ecuador.
"The only thing we asked for from the government was stability. Our volume will drop with this new tax, contraband will flow in, and all the plans that we had, in terms of new investment, are at risk, and the jobs, the 5,000 families that live from tobacco growing and cigarettes, are at risk as well."
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