Kenya May Lose Tax Revenue Under New Rules, BAT Says
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British American Tobacco Kenya Ltd., East Africa’s biggest cigarette maker, said Kenya may miss out on 2 billion shillings ($25 million) of revenue from duties on tobacco in 2011 under planned government regulations.
A proposal by Kenya’s parliament last week would change the way the charges are calculated, basing them solely on the retail price rather than on a combination of price and the nature of the product, BAT Kenya said in an e-mailed statement today. That would “result in industrywide pressure to reduce prices in order to comply with the new excise structures,” it said.