Souza Cruz Drops on Brazil Cigarette Tax Increase

Source from:  Bloomberg 04/01/2009

Souza Cruz SA, Brazil's biggest tobacco company, fell the most in three months after the government said it will increase taxes on cigarettes. Souza Cruz dropped 6.3 percent to 44.80 reais in Sao Paulo trading, the biggest retreat since Dec. 15. Brazil Finance Minister Guido Mantega said today that the government will raise taxes on cigarettes as it reduces tariffs on building materials and extends a cut in an automobile sales tax. The higher tax will increase cigarette prices by as much as 30 percent, Mantega said. Enditem