British American Tobacco (BAT), one of the world’s largest producers of tobacco in the world, 11 Oct 2019 halted production at the plant “V. A. T. Priluki” in the Chernihiv region.
“As a company we can’t produce products that don’t know what to do. Because of this we stopped production (technical process stop the enterprise was launched on October 8 – if). For the second week, the factory costs,” – said General Director of “V. A. T. Priluki” Artem Violin in the story of one of the local TV channels.
The company on Friday morning confirmed this information to “Interfax-Ukraine”, indicating that the cause is the Verkhovna Rada adopted the bill No. 1049 regulation on state regulation of trade margins on their products.
As reported, “Philip Morris”, “JT international Company”, “British American tobacco” and “Imperial tobacco” consider the possibility of reducing production and the further closure of factories on the territory of Ukraine due to the approval by Parliament of the legislation on state regulation of trade margins on their products.
Adopted October 4, second reading of bill No. 1049 on the introduction of the single account for paying taxes and levies, single contribution for obligatory state social insurance to establish a fixed margin for wholesalers and retailers of tobacco at 7% and 13% of the maximum retail prices per pack.
The Council of entrepreneurs under the Cabinet of Ministers appealed to President Vladimir Zelensky to veto the bill on the introduction of the single account for paying taxes and levies, single contribution for obligatory state social insurance (No. 1049), because it denies the company the right to set the price of tobacco products.
British American Tobacco (BAT) – a major international tobacco company. Has factories in 42 countries. The company’s portfolio consists of global brands and a growing range of products with potentially reduced risks, including products in the segment of vaping, systems for heating tobacco.
In Ukraine it owns CIAO “AND the Tobacco company “V. A. T. Priluki” (Chernihiv region). founded in 1993 on the basis of Priluki tobacco factory.
The products are exported to Belarus, Armenia, Georgia, Moldova, Azerbaijan, Singapore.