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’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.