Tobacco.org

British American Tobacco may leave Peru if tax situation does not improve 

BAT (British American Tobacco) will make a decision this week about a planned investment of US$25mil in the modernization of the Tabacalera Nacional plant it bought in May and in its tobacco plantations. The decision will be made after the government releases its proposals in regard to tax changes. BAT was affected by the recent 25% increase in the ISC (Impuesto Selectivo al Consumo) tax, and is threatening to move its US export operations to its subsidiaries in Colombia, Venezuela or Chile if the government proposals are not favorable.

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