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Robert McIntyre, director of the progressive Citizens for Tax Justice, acknowledged that while the tobacco tax increase was “probably the biggest one in the bunch,” he said it was outweighed by Obama’s expansion of the child tax credit and the earned income tax credit.
“If somebody raises your tax by one dollar on cigarettes and gives you $100 in tax cuts, you’re probably feeling pretty good about that,” McIntyre said. In March, Obama signed into law a health care bill that has divided the nation and prompted calls from Republicans for repeal.
While most Americans say they like some elements of the law,[link widoczny dla zalogowanych], such as preventing insurers from denying coverage to children based on pre-existing conditions,[link widoczny dla zalogowanych], they are unlikely to enjoy the new taxes in the law, Americans for Tax Reform wrote in its analysis. The firm’s vending machine subsidiary, Sinclair Collis,[link widoczny dla zalogowanych], launched legal action against the bill in February saying it was ‘seeking judicial review of the relevant sections of the Health Act 2009′.
But whether you are smoker or non-smoker the question here is whether the ban will affect business at BAT and Imperial. The answer,[link widoczny dla zalogowanych], almost certainly, is no. BAT, as the world’s second-largest quoted tobacco group by global market share, has brands sold in more than 180 markets. In July, it reported a 7.3 per cent rise in first-half profit as sales in some of its key markets stabilised with the recovery in the world economy.
The company’s pre-tax profit rose from ��2.12 billion to ��2.28 billion and revenue after duty and taxes was 8 per cent higher at ��7.3 billion, with the weakness of sterling boosting revenue by four percentage points. The company sold 348 billion cigarettes in the half, down only one billion on last year, helped by the acquisition of Indonesian tobacco company PT Bentoel.
Like-for-like volumes fell 3 per cent, hit by steep excise increases in Romania and Turkey. British American Tobacco (Kenya) is diversifying into the export of semi-processed tobacco after investing Sh350 million in a processing plant to increase its revenue sources. The firm, which begun exporting the leaf this month, has plants in South Africa,[link widoczny dla zalogowanych], Nigeria,[link widoczny dla zalogowanych], Turkey and Kenya serving its Middle East and African markets.
It plans to leverage on the plants in both the East African Community and Common Market for Eastern and Southern Africa trading blocs. “We are targeting the trading blocs since we are placed strategically in the region in terms of the processing plants that are available,” Mr Lawrence Kimathi,[link widoczny dla zalogowanych],[link widoczny dla zalogowanych], finance director told the Daily Nation.