The Demerara Tobacco Company (Demtoco) says compliance with new public health regulations have already led it to hike the prices of its products even as it awaits the impact of the new tax regime for tobacco.
As of January 1st, 2019, a combination of ad valorem and a specific Excise Tax of $2,500 per 1,000 sticks, together with Customs Duty of 100 % and VAT of 14%, is being applied to tobacco products in an attempt to reduce smuggling and simplify administration. Previously, the products, which include cigars, cheroots, cigarillos and cigarettes, “homogenized” or “reconstituted” tobacco, tobacco extract and essences, attracted an Excise Tax of 100% the invoiced value of products.
Minister of Finance Winston Jordan has said the new regime for taxing tobacco products will net government an increase of $50 million in revenue from the industry.
