BAT threatens to exit over tax hikes

British American Tobacco on Tuesday warned it may pull out investment from Pakistan if the government further increases taxes on cigarettes in the budget, stating that existing taxation has already caused a 38% slump in sales and increased the size of the illicit sector to 58%. The company conveyed its concerns about the shrinking regulated tobacco sector and the growing illicit cigarette market due to fiscal policies, said Michael Dijanosic, Regional Director for Asia Pacific, Middle East, and Africa at British American Tobacco (BAT). The BAT delegation separately met with Prime Minister Shehbaz Sharif and the Special Investment Facilitation Council (SIFC) national coordinator Lt General Sarfraz Hussain. The company made its intentions public amid dwindling investment in Pakistan, which dipped to a 50-year low of 13.1% of GDP. The government has also notified a new SIFC Cabinet Committee, incorporating Chief of the Army Staff General Asim Munir and national coordinators as co-opted members of the committee.