Representatives of the Bahamian tobacco industry have reiterated their concerns in regards to the government providing, "a level playing field", for the taxation of domestic and foreign cigarette distributers following the announcement of a new cigarette tax.
The government announced the new tax last week in Prime Minister Perry Christie's budget communication. The proposed tax of 25 cents per cigarette pack for self-adhesive excise stamps and 20 cents for dry stamps will stack with the preexisting 15 cent tax per cigarette, raising the total tax per pack to $3.20-$3.25.
Stan Freedman, CEO of United States-based Rush Cigarettes, said that he was, "surprised" by the newly-announced tax given the government's desire to join the World Trade Organization (WTO).
On the topic of equal taxation for foreign and domestic cigarette companies, Freedman stated that local tobacco product manufacturers "should pay along with everybody else... What right do they have to an advantage? It's not a level playing field."
He continued. "I'm surprised that they'd even do this if they want to be competitive and join the WTO."
Edward Gardiner, vice-president of retail, purchasing and logistics at Bristol Wine and Spirits, claimed that he had no issue with the new tax, "if everybody plays by the same rules". Gardiner added that Bristol remains, "supportive of the government" and would comply, "100 percent" with the new tobacco policy.
However, Gardiner remained uncertain if domestic tobacco producers were paying the previous tax of 15 cents per cigarette and stressed that the government needed to clarify the new tax legislation.
"They need to communicate better, we're still waiting to hear from the government," said Gardiner.
He claimed that Palm Cigarettes, produced by Caribbean Tobacco Enterprises (CTE), did not put excise stamps on their tobacco products and unfairly avoided taxes.
Last month allegations
surfaced that the Grand Bahama-based company had not been paying the previously implemented 15 cent tax. However, Managing director of CTE Stunce Williams insisted at the time that the company paid, "what it is being billed".
Williams had no comment when asked by Guardian Business whether CTE would honor the new taxes.
John Wilson, partner at McKinney, Bancroft and Hughes and founder of Bahamas Cigarette and Tobacco Company (BCTC), also had no comment on the new tax proposal. BCTC, which is affiliated with Canadian cigarette manufacturer Grand River Enterprises (GRE), recently launched a cigarette factory in Nassau. Wilson had previously campaigned for local exemptions from excise tax.
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