BAT tobacco tax worth $801.2m
Last year British American Tobacco Holdings (New Zealand) paid $801.2 million in excise duty. That is as much as the government took out from all 16 enterprises owned but the state, according to the company’s data.
Income increased 4.1 per cent to $120.7 million a year earlier, in accordance with financial data of the company based in Auckland and allocated there with the Companies Office.
The tobacco company’s sales declined to $1.06 billion from $1.08 billion last year, meaning three quarters of its income were taken out by the government. It as well paid $32.9 million in company duty.
The cost of sales jumped to $864.3 million from $850.1 million. British American Tobacco gave $49.9 million to buy finished products from related parties and made its inventory to $338.2 million as at December 31, from $220.1 million in 2011.
In March, British American Tobacco concluded a bargain with the Inland Revenue Department over historic tax avoidance, according to which the company used transboundary structured finance transactions that used creepholes in the international tax law of New Zealand.
The tobacco distributer accepted to pay $15.6 million in tax and interest of $6.3 million, having beforehand provided in its accounts for almost $40 million.
Excise on tobacco is established to increase a yearly 10 per cent for the next 4 years after Finance Minister Bill English aimed smokers in the budget to make a bigger contribution to returning to excess in 2015.
Due to the fact that tobacco is an addictive product, the increases have been marked an active way of raising earnings for the government by the Treasury, and the latest round of hikes will increase the treasury by $1.4 billion over the four years.
BAT was already disputing with three years of 10 per cent yearly increases as part of the government’s measure for a smoke-free nation by 2025.
The company gave a dividend of $162.9 million back to its parent, the biggest repayment to the shareholder since Rothmans International was acquired by British American Tobacco in 1999. It did not pay a dividend in 2010.
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