- BAT paid close to 5 billion lei to the state budget in H1 2021
- This represents an increase of 18% or 700 million lei versus SPLY
- BAT is building A Better Tomorrow™ for all stakeholders which includes reducing the health impact of its business
BAT paid 5 billion lei to the state budget in the first half of 2021, an increase of 700 million RON (or 18%) versus the first half of 2020. Excise duties represent about 60% of the price of a pack of cigarettes, plus VAT, which means that taxes amount to nearly 80% of the price of a cigarette pack.
BAT was Romania’s biggest taxpayer in 2020, with a total contribution of nearly 9,6 billion lei (2 billion EUR) in excise and taxes. This was possible due to a record low of illicit trade, which fell below 10% for the first time in Romania since measurements are made.
„We are happy that we can continue to have a solid contribution to the state’s finances, especially in these difficult times. But in order to do so we need two simple things: a continuous pressure on keeping the level of illicit trafficking low and a fair and balanced excise regime across all nicotine products that can enable sustainable revenues for the state budget and predictability for the industry and the consumers”, said Fred Monteiro, Central Europe South Area Director, British American Tobacco.
BAT is the largest player on the tobacco market, with a market share over 50% and one of the leading investors in Romania. The company’s total investments in its Ploiești factory have surpassed the 500 million threshold since 1996. BAT employs over 3.000 people and creates another 30.000 jobs through its supply and distribution chain.
”We are committed to build A Better Tomorrow by reducing the impact of our global business and providing adult consumers with a wide range of enjoyable and less risky* products. We will continue to do so while being a reliable partner to the authorities, by paying our taxes and fighting illicit trade”, added Monteiro.