Tobacco.org

Reduce duty, BAT urges State 

British American Tobacco, wants the government to reduce excise duty on cigarettes to lock out illicit traders from the local market. The pitch for lower taxes by the largest cigarette manufacturer comes several weeks ahead of the budget that is traditionally read in June.

The government mostly targets the sin taxes that include cigarettes and alcohol during the budget to raise revenue. However, speaking during the company’s annual general meeting at the Intercontinental hotel on Thursday, the CEO Gary Fagan said the excise duty had increased to unsustainable levels, making the product unaffordable to the low-end market while opening ground for illicit cigarettes to find their way into the local market.

“The government needs to understand that excessive excise tax increases will lead to a decline of the legal market and provide incentive for illicit trade (tax evasion and smuggling) to grow,”

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